As part of the deal, Walmart will initially appoint all 5 directors to Flipkart’s board, two directors will be named by minority shareholders while Bansal will take one board seat, according to the filing.
Walmart said the idea may, in future, appoint a sixth board member with the approval of the majority of the Flipkart directors.
the idea also said the idea could appoint or replace Flipkart’s chief executive as well as also various other key executives of group companies in consultation with Bansal as well as also the board.
Walmart or its units could ask Flipkart to issue brand-new ordinary shares of up to $3 billion before the close of the “transactions as well as also on or before the first anniversary of the closing”, the idea said.
Reuters previously reported of which Google-parent Alphabet was in talks to invest about $3 billion for a roughly 15 percent stake in Flipkart.
of which deal could be sealed before the close of the Walmart-Flipkart transaction or immediately after, a source told Reuters, declining to be named as the talks are private.
Walmart also said no party would certainly be liable to pay a termination fee if a share issuance or purchase agreement with Flipkart were terminated.
The Economic Times newspaper reported on Friday, citing unnamed sources, of which Japan’s SoftBank Group, which owns a roughly 20 percent stake in Flipkart, was rethinking its exit due to tax liabilities as well as also because the idea saw further value in Flipkart.
SoftBank Chief Executive Masayoshi Son has said of which their investment in Flipkart had grown to almost $4 billion. of which growth came just 9 months after SoftBank used its Vision Fund to invest about $2.5 billion in Flipkart.
A spokeswoman for SoftBank in India declined comment.
Former Amazon employees Sachin as well as also Binny Bansal founded Flipkart in 2007 as well as also, just like Amazon, began by selling books.