Japan’s SoftBank has decided to sell its over 20 % stake in e-commerce major Flipkart to United States retailer Walmart for an estimated $ 4 billion. “SoftBank confirms the sale of its entire stake in Flipkart to Walmart,” a SoftBank spokesperson said. The company is estimated to rake in about $ 4 billion from the sale.
On May 9, Walmart announced that it will pay about $16 billion to buy about 77 % stake in Flipkart. While significant shareholders in the Bengaluru-based company like Naspers, venture fund Accel Partners and eBay had agreed to sell their shares, SoftBank had not taken a final call.
A statement issued by Walmart on May 9 identified Flipkart co-founder Binny Bansal, Tencent Holdings Ltd, Tiger Global Management LLC and Microsoft Corp as those who would continue to be investors in Flipkart. SoftBank invested $ 2.5 billion in Flipkart last year.
On May 9, hours before Walmart was scheduled to announce the Flipkart acquisition, SoftBank chief executive Masayoshi Son told during an investor call on his company’s earnings that Walmart had agreed to buy a controlling stake in the Indian e-commerce company.
While SoftBank is now exiting Flipkart, it continues to be a significant investor in Flipkart’s rival Paytm Mall. Reports suggest after the closure of the Flipkart deal, SoftBank could look at pumping in funds into Paytm Mall.