The Flipkart-Walmart deal of worth $16 billion was the biggest business development in India a few days.
Amidst the deal, the calculation and huge sums of who’s (SoftBank, Tiger Global, Naspers and others) gonna take what out of the deal was generously discussed. Last but not the least was Flipkart employees should they reap benefits from ESOPs buyback programme.
After dilly-dallying and deluge of media speculation, the situation over ESOPs buyback of Flipkart employees seems to be almost clear.
The liquidation of vested Employees Stock Options (ESOPs) will be in a range of $125-129 per share, based on the transaction amount, once Walmart completes the acquisition, according to a letter written by Flipkart to its employees.
The exact price point will be decided after the closure of the transaction and regulatory approvals over the next 60 to 90 days.
However, the liquidation of stock options is not to be easy for the company’s employees. As reported earlier, ESOPs can be liquidated in three instalments — half of ESOPs can be liquidated on the date of closing of the deal; 25 per cent a year later, and the rest two years after the first liquidation.
There are over 2,000 employees, who own ESOPs across Flipkart, Myntra and Jabong.
Among them, about 200-250 employees of Flipkart, 150 of Myntra and additional 50 of Jabong are eligible to exercise the option as part of the deal.
The development was first reported by Mint.