Published By : 19 Jul 2017 | Published By : QYRESEARCH
At least 75% of all the shareholders in Snapdeal are required to give their nod for its impending acquisition by Flipkart. This revelation is indicative of the fact that a ‘yes’ from the founders and investors on the board of Jasper Infotech in not sufficient for this merger to happen. Flipkart wants a clearance from all of the Snapdeal shareholders and it is offering special payment options for several investors, such as Nexus Venture Partners and Kalaari Capital.
According to sources, Flipkart idyllically has asked for signatures from all the investors. If it does not happen, in that case, it would need at least ¾th of the entire group of shareholders to give permission once Snapdeal agrees to take Flipkart’s offer. Yesterday, Flipkart revised its offer to Snapdeal to US$850-900 mn. The new development came on the back of the minority investors, particularly after Premji Invest wrote two letters to the board of Snapdeal asking for a fair treatment of each of the investors irrespective of their holding in its parent company, Jasper Infotech.
These conversation points towards that the minority shareholders are not being informed of the developments regarding the deal. Since then, the board has been trying to smooth out the things with smaller shareholders in an effort of meeting their demands. As Flipkart has made it clear that it does not want any issue over this deal from any stakeholders, Snapdeal is in talks with each and every shareholder of the company to make it a clean deal.