Snapdeal Decides to Stay Independent
August 1st, 2017
India's Snapdeal said it had decided to remain independent and was ending all talks regarding a sale, bringing the curtain down on months of discussions around a possible acquisition of the e-commerce firm by bigger rival Flipkart.
The failure to forge a deal is a setback for Soft Bank Group the largest investor in Snapdeal, as the Japanese firm has been trying to engineer an all-stock transaction for months, as a means to secure a sizeable stake in Flipkart, India's largest home-grown e-commerce player.
The decision also puts e-commerce giant Amazon on a stronger footing in India, as for now it deprives Flipkart of a cash infusion from Soft Bank which had been expected to come in parallel with this deal.
The board of Jasper Infotech, which runs Snapdeal, had agreed in principle to Flipkart's revised buyout bid of up to $950 million and a deal was pending approval of smaller shareholders, Reuters reported last week.
But obstacles remained with sources saying founders Kunal Bahl and Rohit Bansal were considering an alternate path.
"The company has now decided to pursue an independent path and is terminating all strategic discussions as a result," Snapdeal said in a statement on Monday.