WAL-MART bought 16 billion of Indias electricity supplier Flipkart 77% stake.

category:Internet
 WAL-MART bought 16 billion of Indias electricity supplier Flipkart 77% stake.


The deal took nearly two years, and the completion of the deal would help the retailer, headquartered in Bentonville, Arkansas, to consolidate and enhance its market share when competing with Amazon. Amazon allegedly tried to bid for Flipkarts stake. Given its size and growth, India is one of the most attractive retail markets in the world, WAL-MART CEO Doug Mcmillan (DougMcMillon) said in a statement. Our investment is an opportunity to cooperate with Flipkart, which is leading the transformation of Indias e-commerce market. Flipkart e-commerce platform sells a wide range of products, including soap, smart phones, books and clothing. According to Morgan Stanley, an investment bank, the purchase of Flipkart will allow WAL-MART to enter the emerging e-business market in India, a market that could reach $200 billion in ten years. WAL-MART said it plans to finance the deal by issuing new bonds plus cash in hand. WAL-MART warns that if the deal is expected to be completed before the end of the second quarter, it expects the deal to reduce its earnings per share by 25 cents to 30 cents per share in the 2019 fiscal year. Flipkart said that the remaining shares that WAL-MART did not buy would be held by some of the existing shareholders of Flipkart, including Flipkart co - founder BinnyBansal, Chinas Tencent, the Tiger Fund (TigerGlobalManagementLLC) and Microsoft Corp. Earlier Wednesday, before the highly anticipated official news of the deal, Sun Zhengyi, chief executive of the Softbank group, unexpectedly confirmed at a conference call that WAL-MART had decided to buy flipkart. Sun Zhengyi said his companys investment in the India electricity supplier has increased to $4 billion. Softbanks technology fund VisionFund is currently the worlds largest private equity fund, which invested $2 billion 500 million in Flipkart in August last year. The source told the media yesterday that Softbank would sell all its Flipkart stake to WAL-MART. (Tianmenshan Mountain) source: NetEase science and technology report editor: Yao Liwei _NT6056 Flipkart said that the remaining shares that WAL-MART did not buy would be held by some of the existing shareholders of Flipkart, including Flipkart co - founder BinnyBansal, Chinas Tencent, the Tiger Fund (TigerGlobalManagementLLC) and Microsoft Corp. Earlier Wednesday, before the highly anticipated official news of the deal, Sun Zhengyi, chief executive of the Softbank group, unexpectedly confirmed at a conference call that WAL-MART had decided to buy flipkart. Sun Zhengyi said his companys investment in the India electricity supplier has increased to $4 billion. Softbanks technology fund VisionFund is currently the worlds largest private equity fund, which invested $2 billion 500 million in Flipkart in August last year. The source told the media yesterday that Softbank would sell all its Flipkart stake to WAL-MART. (Tianmenshan Mountain)