Softbank proposes to buy Flipkart shares at a reduced valuation

Key Highlights

• Softbank wants to buy shares of Flipkart at a reduced valuation.
• Flipkart was valued at $11.6 billion in 2017.
• Softbank has offered to buy Flipkart’s shares in a range of $85-89 per share.

Softbank has made a proposition to buy Flipkart’s shares from the e-commerce giant’s investors and former employees.
 
The Japanese telecom and internet conglomerate is offering to buy an undisclosed number of Flipkart shares at a reduced valuation in the range of $10 billion, a report by Live Mint said on Thursday.

The report added that Softbank has offered to buy Flipkart’s shares in a range of $85-89 per share.

However, the homegrown e-commerce website of Flipkart was previously valued at $11.6 billion after raising a round of funding from Tencent Holdings among other investors.

Softbank became one of the largest shareholders in Flipkart with its investment of $2.4 billion.

Another big investor in Flipkart, Tiger Global Management is expected to sell shares worth $700 million, the report added.

Also Read: 

• Flipkart now valued at $11.6 billion after Softbank's $2.4 billion
• Flipkart to spend $1.4 billion investment after careful cost considerations, says Binny Bansal