Walmart takes over Flipkart for USD 3 billion
Walmart could invest $3 billion more in Flipkart within a year of completing the purchase of 77 per cent stake in the Indian e-commerce company, the world’s largest retailer said in a filing to the US Securities and Exchange Commission on Friday. Walmart’s additional share purchase, if made, will be at the same price at which it made the initial investment, the filing said. This could take Walmart’s stake to over 85 per cent.
The price at which Walmart bought Flipkart stake has not been disclosed, and different tranches could have been purchased at different prices. Walmart’s filing assumes significance at a time when Flipkart’s key shareholder, Japanese internet and telecoms giant, Soft-Bank, is undecided about the sale of its shares. SoftBank holds approximately 22 per cent in Flipkart.