Source: Silicon Angle
Japan’s SoftBank Group Corp. has confirmed selling all of its 22% stake in Flipkart to Walmart. It was almost a year ago that SoftBank had invested 2.5 billion dollars in Flipkart through the Vision Fund. With this deal, the stake would be brought for 4 billion dollars.
Although there wasn’t any specific reason shared for this decision, the tax implication seems to be a big hinderance for the group. If this transaction takes places within 24 months of stake purchase, it would ensure a short-term capital gain tax. Before Flipkart, SoftBank had invested in Snapdeal in 2014, this lead with the group writing off almost 1 billion dollars that was invested in this Delhi based e-commerce market.
Source: Indian Retailer
