After Kalyan Krishnamurthy (CEO) and Binny Bansal (Group CEO), Flipkart’s Executive Chairman Sachin Bansal is next on the line who may also exit the company in case of a successful completion of the deal with Walmart.
The development is sudden as Sachin until last week had no such plans of selling any of his holdings and was still interested in hanging around in the firm even after the Walmart deal.
Walmart is on course to announce a $8-10 billion deal to pick up a majority stake in Flipkart over the next few days. TOI first reported Walmart’s interest in getting a route to majority at Flipkart in its February 8 edition.
Amidst this, according to a report by Factordaily, Walmart has decided to pay a whopping $14.6 billion in cash and stock to acquire 73 per cent stake in the biggest e-commerce company in India.
At present, Bansals reportedly claim to own 5.5 per cent each in Flipkart. While Binny Bansal is likely to sell about a tenth of his shares in the company, it is not decided how much Sachin Bansal will sell.
Walmart is seen to be keen on bringing Binny and Krishnamurthy (an ex-Tiger Global executive) on the company board, besides having at least three of their own nominees. Krishnamurthy, who took over as CEO from Binny in January last year, is seen to have turned around the e-commerce major after two sluggish years when it ceded market share to Amazon under the leadership of Sachin.
“Flipkart’s largest investor SoftBank and Bansal were aligned in pursuing a merger deal with Amazon, which didn’t get the backing of the majority shareholders,” said a person in the know.