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SoftBank May Not Sell Flipkart Stake in Walmart Deal

Despite widespread reports that SoftBank would unload its stake in Flipkart as part of the Walmart deal, the investment firm hasn’t yet decided whether to sell, say people familiar with the situation. SoftBank has about 10 days to decide whether to sell its stake and if so, how much. It may decide to stay in Flipkart, where it would become the second largest shareholder, one of the people said. Walmart has agreed to buy a 77% stake for $16 billion, valuing the company at $20.5 billion. 

SoftBank’s Masayoshi Son inadvertently leaked that Walmart deal and most media outlets reported that SoftBank would sell the $2.5 billion stake it bought last year, when Flipkart was valued about $11 billion.

However, SoftBank believes in the upside potential of Flipkart under Walmart leadership, which could eventually offer an exit to the remaining shareholders by taking the company public in the U.S., one of the people said.

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