SoftBank has confirmed that it will sell its entire stake of 23.6% in Flipkart following the Walmart acquisition.
After SoftBank CEO Masayoshi Son inadvertently announced on May 9 that the Walmart-Flipkart deal was finalised, the company found itself in a tight spot and was examining its options to exit as well as stay in Flipkart. The reason for this potential flip-flop was attributed to a hefty tax burden that a short-term exit from Flipkart would attract for Softbank.
SoftBank, a major shareholder in Flipkart had about 10 days to decide whether or not it wanted to sell its stake and, if yes, how much. It was suggested that it might also decide to stay in the Indian ecommerce company and become the second largest stakeholder following the acquisition by US retail giant Walmart.
While SoftBank’s position has been a subject of wide speculation recently, Walmart claimed that even if SoftBank decides against selling the stake, it believed SoftBank’s decision wouldn’t make any “material difference” to its plans for the Indian ecommerce giant.