Published Date : Jul 05, 2017
The Jasper Infotech board has declined an initial offer from Flipkart, the largest online marketplace in India, of around US$800-US$900 mn for the acquisition of Snapdeal. Nearly eight weeks ago, Flipkart had initiated the process to acquire the troubled e-retailer, Snapdeal. The development has come days after the E-commerce giant completed the legal and commercial due diligence.
As per the sources aware of these developments, the talks among both the parties will continue till they strike a mutual point. However, it is still unclear when Flipkart will respond with a revised offer. “The due diligence was clean, without red flags. Therefore, the price that was being quoted, undervalues the firm significantly,” revealed one source.
Both Flipkart and Snapdeal Tightlipped on Deal
It is also not revealed if the decision of Jasper Infotech board of rejecting the Flipkart’s proposal was a unanimous one. Both Flipkart and Snapdeal have refrained for revealing any detail. Flipkart had an exclusivity to present a formal proposal till July 3rd, 2017 and had appointed Ernst & Young, a global professional services firm, for conducting the due diligence on its behalf. Snapdeal, on the other hand, had appointed Deloitte.
Although the dismissal of its initial offer will not drop the curtains over this potentially momentous deal, the delay may add to the already protracted wait of the SoftBank further for the transaction to close, providing the Japanese investor has been trying to clean up its so far largely underachieving portfolio in India.