As per the documents, regarding the mega bond that was issued to finance the transaction, filed by the US-based retailing behemoth Walmart, the largest offline retailer in the world has given itself extra-time for the closure of the largest acquisition in the history of e-commerce.
Walmart is eyeing to close the 77 per cent acquisition deal by June 7, 2019, failing to which, the retailer will have to repay a large amount of the bond. However, the company is confident of completing the transaction by the end of this year.
The much-anticipated US $ 16 bn deal will give the offline retail giant 77 per cent shares in Flipkart.
Notably, as per a regulatory filing made in May, a deadline of March 9, 2019, was set in the share purchase agreement between the two companies among which the termination rights have been negotiated.
The deal has faced heat from the small retailers in the country, with the Confederation of All India Traders (CAIT) even stating that this deal (if it goes all the way) will be cancerous for the e-commerce market in India. Walmart, however, is optimistic about getting a timely nod from the Indian governing bodies.
“The date in the 8-K filing (a current report that companies have to file with the SEC to announce major events that shareholders should have access to) on June 21, 2018, is related generally to the bonds issued recently,” a spokesperson from Walmart was quoted as saying by a leading media house.
Furthermore, around 10 lakh traders are expected to hold a protest today (2 July 2018) across different parts of the country in order to oppose this deal. The protest is backed by CAIT and it is expected to take place in around 1,000 places across 500 cities.
