Talks have been on between Walmart and SoftBank over Flipkart's final valuation with the Japanese telecom major asking for almost a billion dollars more. Sources said it had delayed the signing of the term sheet. They added Walmart was supposed to sign the dotted line almost 10 days back, soon after it had completed its due-diligence.
"While Walmart is valuing Flipkart at close to $20 billion, SoftBank values Flipkart at over $21 billion. This would make the value of the primary as well as secondary shares higher, which would benefit SoftBank," said a source. SoftBank said it does not comment on speculations.
Walmart is planning to pick up around 55 per cent stake in Flipkart through a mix of primary and secondary stake sale, paying $8 -$10 billion. SoftBank Group last year had invested over $2.5 billion in Flipkart for around 20 per cent stake in the firm. SoftBank called it speculation and refused to comment on the developments.
However, industry insiders said negotiations were on and the deal might happen over the next few weeks. Sources said Flipkart founders Sachin and Binny Bansal, investors Tiger Global, and other investors were in favour of a deal with Walmart.