A caveat in Walmart’s deal to acquire a majority stake in Indian ecommerce group Flipkart may see it taking the company public in four years, TechCrunch reported.
Walmart recently announced it is paying $16 billion for a 77% stake in Flipkart Group.
According to a public filing, 60% of Flipkart’s minority shareholders may act together to require the company to stage an initial public offering after the fourth anniversary of the Walmart deal.
If the company is taken public in this way, the caveat stated, it will be at a valuation no less than that paid by Walmart – $20.8 billion.
Flipkart’s minority shareholders include Tencent Holdings, Tiger Global Management, Microsoft, SoftBank, and company cofounder Binny Bansal.