Top trio at Flipkart to resign post Walmart deal?

Top trio at Flipkart to resign post Walmart deal?

As the deal between Flipkart and Walmart inches closer, it has been reported that Sachin Bansal, the executive chairman, of Flipkart may leave the company who now holds 5.5 percent stake in the company. The American company has apparently agreed to purchase a 73% stake in the Indian online shopping portal, taking Flipkart's valuation to somewhere between $20-22 billion.

The approval of the deal with Walmart also means that Amazon's offer to buy a majority stake in Flipkart wasn't accepted by the board.

Kalyan Krishnamurthy is expected to stay on as CEO of Flipkart post the deal, while co-founder Sachin Bansal is expected to exit the company in all capacities including his seat on the board of directors after the takeover.

A deal is far from finalised, however, and talks between the two parties and investors in Flipkart are ongoing, said a third source to Reuters.

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After failing to build an online retail venture, this deal will give Walmart another chance at India's growing ecommerce market and take on Amazon, which it has been struggling to compete with in the rest of the globe.

CEO Krishnamurthy is expected to continue in his role, but numerous reports have been pointing to the exit of one of the two founders, Sachin Bansal, who is now the executive chairman of the company.

The development assumes significance as United States retail giant Walmart is close to sealing its deal to acquire majority stake in Flipkart.

Last month it offered a break-up fee of $2 billion to the Bengaluru-based company and recently it made a formal offer to buy a 60 per cent stake in the online retailer.

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Last year, there were rumours and speculations that Flipkart would buy Snapdeal, but the deal officially ended around mid-2017.

Walmart shares closed 0.13 percent lower Thursday on the New York Stock Exchange, while Amazon stocks closed higher by 2.39 percent on Nasdaq.

Alphabet Inc., Google's parent company may also be looking to invest in Flipkart. The companies are each other's rivals in the USA as well. Walmart and SoftBank declined to comment.

Amazon has already been aggressively expanding in the country on its own. It will also be one the biggest acquisition deals by Walmart.

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As part of the Walmart deal, Flipkart's existing shareholders Tencent Holdings Ltd., South Africa's Naspers Ltd. and Microsoft Corp. are expected to retain small stakes, the people said.

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