A clutch of high-profile minority shareholders, including Ratan Tata, Temasek and BlackRock and Foxconn, have given in-principal approval to the Flipkart-Snapdeal merger.
Snapdeal founders and lead investor, SoftBank, had yesterday written to the minority shareholders for their nod to the revised Flipkart deal, which is worth USD 950-970 million.
Premji Invest and Ontario Pension Fund still haven’t given a nod to the merger.
The six key minority shareholders — Rata Tata, PremjiInvest, Foxconn, Temasek, Ontario Pension Fund and BlackRock — together hold about 12 percent stake in Snapdeal.
Also read: Flipkart makes a $950-million revised bid for Snapdeal
Rata Tata had earlier raised some concerns about how the deal would work, the rationale behind the merger and the synergies that the two companies will share post the merger.
For the deal to go ahead, at least 75 percent of minority shareholders had to give a nod.
If the sale does not go through, Snapdeal may witness another round of layoffs which may impact 600 to 1,000 odd employees as part of the Plan B.
In a separate deal, Axis Bank announced acquisition of Snapdeal's mobile wallet firm Freecharge.