If some recent media reports are to be believed, Softbank — biggest shareholder in Snapdel — is contemplating a possible sale of the company to it’s rival Tiger Global-backed Flipkart.
At a meeting on Tuesday, the Japanese investor Softbank appointed its second director on the board of Snapdeal.
The Japanese investor strengthened its position on the board of Snapdeal by appointing Lydia Bly Jett as additional director.
She is the second executive from the Japanese investor to be appointed on the Snapdeal’s board after Kabir Misra.
According to the terms proposed by Softbank, Snapdeal shareholders will get one share of Flipkart for every ten they own in Snapdeal.
Meanwhile, the Alibaba-backed Paytm has also held talks to acquire Snapdeal.
SoftBank had first led a $627 million financing round in Snapdeal in 2014.
Softbank holds 33% in Snapdeal while Kalaari Capital and Nexus Venture Partners own about 8% and 10% respectively.
Co-founders Kunal Bahl and Rohit Bansal own about 6.5% in the company.
The proposed sale could see SoftBank pick up a 20% stake in Flipkart, India’s largest e-commerce company, for about $1.5 billion.
Snapdeal’s seven-member board includes two Directors from SoftBank, one each from Kalaari Capital and Nexus Venture Partners as well as co-founders Kunal Bahl and Rohit Bansal.
Bharti Enterprises vice-chairman Akhil Gupta is an independent director on its board.