Flipkart planning to go private with buying shares back from Small Investors

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Amazon, which is said to be making an offer that is on par with Walmart's bid is also reportedly looking to sign a non-compete agreement with Flipkart's founders.

Two years ago, a separate report noted that Flipkart declined an offer from Amazon to acquire 51% to 55% of its company, noting the price was too low.

A successful move by Amazon to grab Flipkart would likely send Walmart back to the drawing board when it comes to India, retail consultants and analysts said.

Presently, Walmart is planning to acquire majority stake in Flipkart and it has already offered to buy the shares of major stakeholders of the company, including that of SoftBank.

On Wednesday, CNBC TV18 reported that the global e-commerce behemoth has made a formal offer to Flipkart to buy a 60 per cent stake.

The $255 billion USA retailer was close to wrapping up a deal with Flipkart, valuing it at up to $19 billion, Reuters reported on April 12.

- Amazon told Reuters it does not comment on rumours and speculation.

Flipkart and Amazon India did not reply to email queries.

For Amazon, throwing its hat in the ring could be as much about derailing Walmart's efforts as it would be about defending its 27 percent market share in India, consultants and investors said. Amazon was not immediately available for comment when contacted by CNBC.

But Flipkart presents a massive business opportunity and that seems to be driving up valuations, aided by the fact that Walmart has also been stalking the company. According to reports, Amazon Inc has formally made the offer.

Discussions between India's largest e-commerce firm and Walmart have entered the final stage. As per experts, Softbank was the only investor in Flipkart that had depicted an interest in Amazon's major stake acquisition in the firm.

The world's largest online retailer has been pouring billions of dollars into India to ship goods to shoppers faster, contributing to growing losses internationally.

The American brickand-mortar retailer, Walmart, is seeking a route to a majority in one of Indias largest online marketplaces, valuing it at around $20 billion.

"We have been deliberate and thoughtful, we were not slow to respond", she said.

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