Snapdeal looks set to acquire ShopClues
Snapdeal and ShopClues are currently conducting due diligence on a deal that could see Snapdeal acquire 100 percent of ShopClues business, sources told ET Bureau. The anonymous sources reported that a decision on the matter is expected soon.
The sources stated that ShopClues investors are likely to receive one Snapdeal share for every nine ShopClues shares they own should the businesses merge. This would give the shareholders a 10 percent stake in the overall business. However, previous acquisition talks fell through due to a disagreement on the finances of the proposed deal.
Speaking about details of the proposed deal, one of the sources said that “the ask from Shopclues is to get at least a 30 percent stake in Snapdeal as part of the transaction.”
“The management and founders, Radhika Aggarwal and Sanjay Sethi, may get a small cash exit,” said another source.
If the deal goes through as expected, the combined businesses of Snapdeal and ShopClues will be a formidable force in value e-commerce. Both businesses focus on selling low-price items and cater to a non-metro audience.
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