Snapdeal, which has been struggling to decide about its future, has reportedly made its decision. As per the reports, Snapdeal board has approved the acquisition offer made by Flipkart.
After its initial offer got rejected, the Bangalore-based e-commerce firm made a revised offer of acquisition for around ₹6100 crore ($950 million). The report from Reuters now says that the Snapdeal’s board has approved this new revised offer.
The report further says that the shareholders of the company will not have to approve this deal. Snapdeal has been questioned by its minority shareholders regarding the sale process.
Snapdeal had two acquisition offers – one from Flipkart and another from Infibeam. While Infibeam’s offer was for around ₹5500 crore ($700-750 million) compared to Flipkart’s higher valuation estimation, Infibeam was offering control over the company.
There were reports suggesting that the founders of the New Delhi-based online retailer were pushing for the deal with Infibeam, since they get to retain control.
Prior to this ₹6100 crore ($950 million) offer, Flipkart had initially made an offer of ₹5500 crore ($750 million) for the acquisition, which was rejected by Snapdeal’s board.
The Snapdeal acquisition does not include its other subsidiaries such as its logistics business and its payments platform FreeCharge. All the subsidiaries of the company are up for sale, but not included with the Snapdeal.