Softbank, which is the largest shareholder in Snapdeal (33 per cent), made the proposal for sale to India’s largest e-commerce platform during a boardroom discussion, reports said.
However, the terms proposed by the Japanese conglomerate appear to have failed to impress the directors of Jasper Infotech, the owners of Snapdeal, which includes Kunal Bahl and Rohit Bansal.
As per people privy to the developments, most of the directors did not agree to the terms of cash and stock deal, which included selling around 10 shares of Snapdeal for every one share of Flipkart, the Business Standard reported today.
The report adds sources as saying that SoftBank has been unable to bring on board Kalaari and Nexus to sell off their stake in Snapdeal as they think the valuation for Snapdeal being pegged is unreasonably low.
Meanwhile, Economic Times reported that Kalaari Capital and Nexus Venture Partners have also asked for about $100 million each from the sale.
The sale, if through, could see SoftBank pick up a 20 per cent stake in India's largest commerce company for about $1.5 billion (Rs 10,000 crore) , in the process buying out $500 million to $1 billion worth of Tiger Global's holding in Flipkart.
Meanwhile, none of Snapdeal’s shareholders have confirmed the proposed deal. If through, the deal also mark the biggest consolidation in the Indian e-commerce market at a time when Amazon and Alibaba are primed to be the top contenders in the fastest growing market.