The Tokyo-based telecom and investment major holds the largest 33 per cent stake in Snapdeal.
According to three sources privy to the development, the meeting, which went on for more than three hours, was not able to reach a consensus as the board of directors, including Kunal Bahl and Rohit Bansal, did not agree to the terms of the deal.
While SoftBank is making every effort to persuade other directors, especially the ones representing early stage investors Kalaari Capital and Nexus Venture Partners, they are not agreeing to the deal.
While some sources said most of the directors did not agree to the terms of cash and stock deal, which included selling around 10 shares of Snapdeal for every one share of Flipkart, others said such an arrangement was not discussed. Till now SoftBank has not managed to bring on board Kalaari and Nexus to sell off their stake in Snapdeal as they think the valuation for Snapdeal being pegged is unreasonably low. Also, SoftBank Group Corp’s Lydia Bly Jett has joined the board of Jasper Infotech.
SoftBank, which invested around $900 million in Snapdeal and is the major stakeholder in the company as well as digital payments platform Freecharge, has sent Jett as an additional director.
According to company documents sourced from Tofler, SoftBank Group’s chief operating officer Jonathan Bullock resigned from the board in February 2017 followed by the appointment of managing partner Kabir Misra on 10 March. Jett’s appointment is the third board movement from SoftBank to Snapdeal. The move comes at a time when the company is facing financial woes of its own. (READ MORE)
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