<div align="justify">After Snapdeal's board reportedly rejected Flipkart's USD 850 million takeover offer, the two parties are now holding parleys over the USD 150-200 million valuation gap.<br /><br />According to sources privy to the development, Flipkart had initially offered USD 1 billion for the deal but post the due diligence, it made an offer for USD 800-850 million.<br /><br />The offer was rejected by Snapdeal's board as it felt the amount undervalues the company as the due diligence report is clean, one of the sources said.<br /><br />"However, the deal isn't off and negotiations will continue. The differences over Snapdeal's valuation could delay the process," they added.<br /><br />Emails sent to Snapdeal, SoftBank and Flipkart did not elicit response.<br /><br />SoftBank, Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board also has representation from Snapdeal founders (Kunal Bahl and Rohit Bansal), NVP and Kalaari Capital.<br /><br />EY, which was roped in by Flipkart to conduct a due diligence on Snapdeal, submitted its report a few days ago, following which the offer was made.<br /><br />The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.<br /><br />One of the leading contenders in the Indian e-commerce space, Snapdeal has seen its fortunes falling amid strong competition from Amazon and Flipkart.<br /><br />Compared to a valuation of about USD 6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at a much lower level.<br /><br />SoftBank has already written off over USD 1 billion on valuation of its investment in Snapdeal.<br /><br />The deal has been in works for a few months now. SoftBank saw initial hiccups in bringing early investors -- Nexus Venture Partners and Kalaari Capital -- on board with the sale proposal. However, these firms later agreed to the proposal.<br /><br />But, PremjiInvest -- an investor in Snapdeal that does not have board representation -- has recently written to the company seeking greater clarity on the terms and sought equal treatment of shareholders for payouts from the deal.</div>
<div align="justify">After Snapdeal's board reportedly rejected Flipkart's USD 850 million takeover offer, the two parties are now holding parleys over the USD 150-200 million valuation gap.<br /><br />According to sources privy to the development, Flipkart had initially offered USD 1 billion for the deal but post the due diligence, it made an offer for USD 800-850 million.<br /><br />The offer was rejected by Snapdeal's board as it felt the amount undervalues the company as the due diligence report is clean, one of the sources said.<br /><br />"However, the deal isn't off and negotiations will continue. The differences over Snapdeal's valuation could delay the process," they added.<br /><br />Emails sent to Snapdeal, SoftBank and Flipkart did not elicit response.<br /><br />SoftBank, Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board also has representation from Snapdeal founders (Kunal Bahl and Rohit Bansal), NVP and Kalaari Capital.<br /><br />EY, which was roped in by Flipkart to conduct a due diligence on Snapdeal, submitted its report a few days ago, following which the offer was made.<br /><br />The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.<br /><br />One of the leading contenders in the Indian e-commerce space, Snapdeal has seen its fortunes falling amid strong competition from Amazon and Flipkart.<br /><br />Compared to a valuation of about USD 6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at a much lower level.<br /><br />SoftBank has already written off over USD 1 billion on valuation of its investment in Snapdeal.<br /><br />The deal has been in works for a few months now. SoftBank saw initial hiccups in bringing early investors -- Nexus Venture Partners and Kalaari Capital -- on board with the sale proposal. However, these firms later agreed to the proposal.<br /><br />But, PremjiInvest -- an investor in Snapdeal that does not have board representation -- has recently written to the company seeking greater clarity on the terms and sought equal treatment of shareholders for payouts from the deal.</div>