Walmart eyes Flipkart IPO in as early as four years

Walmart eyes Flipkart IPO in as early as four years

Walmart noted that the board may be increased to nine directors at any time, with the additional director being appointed by Walmart with the majority approval of Flipkart directors and unaffiliated with Walmart.

Walmart also mentioned no celebration would be responsible to pay a termination fee if a share issuance or invest in arrangement with Flipkart were also terminated.

Minority investors holding 60 percent of Flipkart's stocks "acting collectively, may necessitate Flipkart to effect an initial public offering" (IPO) 4 decades after the beginning of their Walmart Flipkart transaction, " the Bentonville, " Arkansas-based retailer said at a May 11 filing with an U.S. Securities and Exchange Commission. No termination fee would be payable by any party if the Share Issuance Agreement or the Share Purchase Agreement were terminated, ? it said.

Moreover, Bentonville, Arkansas-based U.S. retailer said in the filing that it has the right to appoint or change chief executive or other principal executives of the country's largest e-commerce company.

Walmart or its components could question Flipkart to issue new common shares of up to 3 billion until the closing of their "transactions and before or on the very first anniversary of their final", it also said.

India's largest e-commerce company Flipkart's recent fundraise of $1.

More news: Lomachenko stops Linares for historic 3rd world title
More news: ISIS claims responsibility for Paris knife attack
More news: Will not permit torture if confirmed to run CIA: Haspel

Walmart will also have right to appoint or replace the chief executive officer and other principal executives of the Flipkart group of companies, subject to certain consultation rights of the board and the founder.

The US retail major will initially appoint five directors on the board of the Indian company and may appoint an additional director in future. Binny Bansal, co-founder and group CEO, continues in his role while Sachin Bansal, co-founder and executive chairman made a decision to quit the company. SoftBank holds approximately 22% in Flipkart. This suggests that minority shareholders, with a combined stake of 13.8 per cent of the overall equity of Flipkart, may be able to block some transactions.

"Shareholders agreement would expire upon the consummation of the IPO, whether initiated by the board or the minority stockholders", it added.

In case, SoftBank decides not to sell, Walmart would be left with about 55 per cent of Flipkart.

Minority investors following the sale include Co Founder Binny Bansal, China's Ten-cent Holdings, U.S. Hedge-fund Tiger World Wide Management along with Micro Soft. SoftBank's Masayoshi Son will take a call in the next 7-10 days on whether to exit India's biggest online retailer or stay invested for some more time, they said.

Related Articles

  • Mars Helicopter to Fly on NASA's Next Red Planet Rover Mission

    Mars Helicopter to Fly on NASA's Next Red Planet Rover Mission

    The mission is scheduled to launch in July 2020 to study the implications of using "heavier-than-air vehicles" on the Red Planet . The aircraft is expected to reach the Red Planet in February 2021, more than half a year after its July 2020 launch.
    AT&T CEO: We made 'big mistake' hiring Cohen, chief lobbyist out

    AT&T CEO: We made 'big mistake' hiring Cohen, chief lobbyist out

    In that episode Trump said Giuliani would "get his facts straight". "When it first came out, he was surprised", Giuliani said . Stephenson also said in the memo that the company's head of lobbying and external affairs, Bob Quinn , 57, would be retiring.
    Police investigate if grandfather is responsible for mass shooting

    Police investigate if grandfather is responsible for mass shooting

    In a statement, West Australian Police said officers were expected to remain at the home for "an extended period of time ". To support locals, free counselling sessions have been set up at the Margaret River Community Resource Centre.
  • Faheem, Shadab revive Pakistan

    Faheem, Shadab revive Pakistan

    Barely had the crowd's cheers subsided, than Imam was lbw for seven to a Murtagh delivery that came back into him. There was drama at an initially sun-drenched Malahide right from Saturday's first ball of this stand-alone match.
    USA  apologises after Canadian Sikh Minister told to remove turban

    USA apologises after Canadian Sikh Minister told to remove turban

    Bains added that he has travelled to the US and internationally many times and had never before been asked to remove his turban. But the minister says his position should not have mattered and that procedures were not followed properly in the incident.
    Coogler reflects on the tsunami of 'Black Panther' in Cannes

    Coogler reflects on the tsunami of 'Black Panther' in Cannes

    While appearing at the Cannes Film Festival, Coogler talked about a particular scene in Black Panther that's near and dear to him.
  • David Moyes non-committal over West Ham future after Manchester United draw

    David Moyes non-committal over West Ham future after Manchester United draw

    The post Man United Finish Second, De Gea Wins Golden Glove After West Ham Draw appeared first on Complete Sports Nigeria . West Ham reacted, Aaron Cresswell firing wide before Joao Mario turned an Arnautovic cross behind from six yards.
    Ireland's leader apologizes for cervical cancer scandal

    Ireland's leader apologizes for cervical cancer scandal

    Tony O'Brien is appearing before an Oireachtas committee where he's been accused of dancing on the head of a pin to avoid resigning.
    UFC 224 Post-Fight Press Conference

    UFC 224 Post-Fight Press Conference

    Lyoto Machida says, "the Dragon is alive!" Oddsmakers have Machida (23-8) as the favorite against Belfort (26-13). Mackenzie Dern has star potential in the UFC, but this weekend has already cast a shadow of doubt over that.
  • Craig Young to provide cover in Ireland Test Squad

    Craig Young to provide cover in Ireland Test Squad

    It also provides the strongest economic legacy for the game enabling us to invest further in the future of cricket. Ireland will be huge underdogs when they face Pakistan in their inaugural men's Test match at Malahide on Friday.

    Biggest Changes & Features Coming to Android P

    Today, the new version of the YouTube mobile app started rolling out, which added some features in keeping with this new theme. This type of updates take longer than expected and Google might have released this update in phases.
    Bomb attacks hit three churches in Indonesia

    Bomb attacks hit three churches in Indonesia

    Indonesian bomb squad officers examine the aftermath of a suicide bomb attack outside a church in Surabaya on May 13, 2018. The deadly blasts all occurred within 10 minutes of each other, police said, with the first explosion at 0030 GMT.