Snapdeal-Flipkart merger: Wipro chairman Azim Premji writes to Snapdeal board

Prominent businessman Azim Premji has reportedly caused a major obstacle in the potential merger of Snapdeal with Flipkart.
 
According to an ET now report, Premji-owned investment firm, Premji Invest has written a letter to Snapdeal board seeking clarity on the interests of minority shareholders.
 
Premji Invest is a minority shareholder in Snapdeal, and had invested in the e-commerce company in May 2014.
 
The report further stated that the Wipro Chairman has sought details on plans for a potential merger or sale and also how the interests of minority shareholders will be protected in such a scenario.
 
Earlier this month, Snapdeal managed to get Board members, which also includes the founders (Kunal Bahl and Rohit Bansal) and early investors Kalaari and Nexus Venture Partners, to agree to the potential deal.
 
Nexus Venture Partners could get close to USD 80 million and a stake in the merged/new entity, while Kalaari could get about USD 70-80 million.
 
As per regulatory filings, SoftBank currently owns over 30 per cent in Snapdeal, while Nexus has roughly a 10 per cent stake and Kalaari holds 8 per cent share in the firm.
 
A non-binding term sheet to start the due diligence by Flipkart for Snapdeal is expected to be signed soon between the two parties.