Flipkart investors, employees trimming stakes as part of SoftBank deal

Some investors, employees and former employees of Flipkart sell their shares in the Indian ecommerce company under a $ 2.5 billion investment agreement with the Japanese group SoftBank, said Thursday two people. ]

In August, Mr. Flipkart stated that the SoftBank Vision Fund, the largest private equity fund in the world, was engaged in this transaction, giving the Bengaluru-based online retailer greater firepower to compete with Amazon.com.

The transaction will allow the Vision Fund to acquire new Flipkart shares worth approximately $ 1.4 billion and use the rest to buy shares from the company. 39, existing investors. The latest sales are part of this deal, said the people, who declined to be identified because the details of the case are not public.

Flipkart and SoftBank declined to comment.

The Indian business daily Mint reported Thursday that the Vision Fund was looking to buy shares of some investors and Flipkart employees for 85 to 89 dollars each.

One of the people familiar with the deal said that a few months ago, stakeholders were agreeing on the value of the actions that Flipkart would buy to its employees and former employees, and which would be offered by the first investors.

The US hedge fund Tiger Global sells about $ 450 million worth of stock after investing about $ 1 billion over the years, according to the person.

The second person confirmed the partial exit of Tiger Global, adding that Vision Fund offered him just over $ 88 per share.

The two people said that Vision Fund's investment in Flipkart had been approved by the antitrust regulator of India.

Tiger Global did not immediately respond to a request for comment. Employees and former employees can hand over their shares to Flipkart at just over $ 85, said the two people.

The deal will leave Tiger Global and the Vision Fund each with about 20% of the shares in Flipkart, according to the people.

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