Mumbai: The largest e-commerce merger deal in India that will see Flipkart buy Snapdeal problematic may have hit an obstacle with one of the smaller investors Wipro founder of the Azim Premji family raising certain objections.
This could jeopardize the finalization of the agreement or reduce the valuation of the e-commerce player Snapdeal, a report by Bloomberg reported. The Premji family has raised objections about special payments made to certain shareholders that included payments to two co-founders and two first sponsors of Snapdeal.
Premji family business PremjiInvest on Wednesday wrote on board Snapdeal drawing members attention to these special payments to the first shareholders and founders.
The letter said that the payment of 90 million dollars to the first investors and founders was not acceptable. However, the $ 30 million in special payments for employees were fine, the letter said.
Flipkart had previously informed Snapdeal to make sure that all its investors also agreed to the terms of the deal before they were assured. “Under the terms proposed, early investors, such as Kalaari Capital and Nexus Venture Partners, would receive $ 60 million in addition to their new capital in Flipkart,” the report added.
Proposed terms stipulated that early investors such as Kalaari Capital and Nexus Venture Partners would receive $ 60 million. This will be in addition to your new equity in Flipkart.
He also said founders Kunal Bahl and Rohit Bansal both would get $ 30 million. These payments have been seen as an attempt to win the big investors and founders of Snapdeal who will later have to accept a lowered valuation of the e-commerce company.
