SoftBank has decided to trade its complete 21% share to the U.S. retail behemoth Walmart in Flipkart. This will end the vagueness generated after Masayoshi Son, the Japanese Internet and telecom behemoth’s chief, previous week claimed that he was still in doubt on the trading. This news was provided by a source well known with the issue.
SoftBank, which spent almost $2.5 Billion in Flipkart via its Vision Fund, is anticipated to make almost $4 Billion on its investment. The firm had been mulling over to remain invested in Flipkart and also potentially hold up the sale owing to tax problems associated with Vision Fund’s registration in Jersey and short-term capital gains. The registration does not have a tax agreement with India. It has now agreed to trade the share and solve the tax problems, claimed the source mentioned above. The media could not establish the precise details or conditions of the deal. A SoftBank’s spokesperson refused to answer to the media.
The firm was in doubt on trading its Flipkart stakes owing to tax connotations and also due to the fact that it witnessed a further increment in capitalization for Flipkart. The media had earlier reported the same. Son had verified this in the previous week at an event claiming that SoftBank is mulling over various options.
The media earlier also reported that SoftBank conducted early meetings to spend more in Paytm Mall. The Japanese Internet behemoth might be freed from a term in its deal with Flipkart that limits it from spending over $500 Million in Paytm Mall till the end of 2020, the media reports claimed.
Speaking of SoftBank, the firm is exploring a potential investment in Zomato (the food delivery and restaurant discovery company), as per 3 sources well known with the developments that are at a very primary phase.