Snapdeal’s board is believed to have rejected a takeover offer of $800-850 million (around Rs 5,500 crore) from larger e-commerce rival Flipkart. According to sources privy to the development, Flipkart has completed the due diligence process and has made an offer of $800-850 million to buy Snapdeal.
However, the offer was rejected by the Snapdeal’s board which felt the amount undervalues the company as the due diligence report is clean.
“The first offer has been rejected but talks are still on. It is an ongoing discussion,” said one of the sources. When contacted, Snapdeal, SoftBank and Flipkart declined to comment. SoftBank, the Snapdeal’s largest investor, has been proactively mediating the sale for the past few months.
Compared to a valuation of about $6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about $1 billion. SoftBank has already written off over $1 billion on valuation of its investment in Snapdeal.