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Walmart says Flipkart could go public in as early as four years
[MUMBAI] Walmart Inc said on Saturday in a filing with a US regulator that it may take India's Flipkart public in as early as four years, detailing for the first time a potential listing timeline for Walmart's largest-ever acquisition.
Minority investors holding 60 per cent of Flipkart's shares "acting together, may require Flipkart to effect an initial public offering" (IPO) four years after the close of the Walmart-Flipkart transaction, the Bentonville, Arkansas-based retailer said in a May 11 filing with the US Securities and Exchange Commission.
The IPO should be done at no less a valuation than that at which Walmart invested in the Indian firm, the filing said.
Walmart announced earlier this week that it will pay US$16 billion for a roughly 77 per cent stake in Flipkart in what is the US retail giant's largest-ever deal and a move to take on arch rival Amazon.com Inc in a key growth market.
The investment implies a valuation of nearly US$21 billion for Bengaluru-headquartered Flipkart.
Minority shareholders after the deal include co-founder Binny Bansal, China's Tencent Holdings, US hedge fund Tiger Global Management and Microsoft Corp.