Business

Snapdeal Rejects Flipkart's Offer Worth $900 Million

न्यूज़ वर्ल्ड इंडिया | 0
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| July 5 , 2017 , 11:20 IST

Snapdeal has rejected Flipkart's offer worth Rs 5,500 crore. Snapdeal has been looking for a buyer for a long time but the company wants more money in the case of a buyout.

According to sources privy to the development, Flipkart has completed the due diligence process and has made an offer of USD 800-850 million to buy Snapdeal. However, the offer was rejected by the Snapdeal's board which felt the amount undervalues the company as the due diligence report is clean.

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"The first offer has been rejected but talks are still on. It is an ongoing discussion," said one of the sources.

When contacted, Snapdeal, SoftBank and Flipkart declined to comment.

SoftBank, the Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board also has representation from Snapdeal founders (Kunal Bahl and Rohit Bansal), NVP and Kalaari Capital.

Sources said Ernst & Young, which was roped in by Flipkart to conduct a due diligence on Snapdeal, submitted its report a few days ago, following which the offer was made.

In 2016 the company was valued at 6.5 billion dollars but the sale to Flipkart could see Snapdeal being valued at 1 billion US Dollars.