May 9, 2018 / 11:11 AM / 13 days ago

BRIEF-Walmart To Buy 77 Pct Stake In Flipkart For About $16 Bln

May 9 (Reuters) - Walmart Inc:

* WALMART TO INVEST IN FLIPKART GROUP

* SAYS SIGNED DEFINITIVE AGREEMENTS TO BECOME LARGEST SHAREHOLDER IN FLIPKART GROUP

* SAYS IT WILL PAY ABOUT $16 BILLION FOR INITIAL STAKE OF ABOUT 77 PERCENT IN FLIPKART

* REMAINING BUSINESS WILL BE HELD BY EXISTING FLIPKART SHAREHOLDERS, INCLUDING CO-FOUNDER BINNY BANSAL, TENCENT, TIGER GLOBAL, MICROSOFT

* CO, FLIPKART WILL MAINTAIN DISTINCT BRANDS & OPERATING STRUCTURES

* KRISH IYER, PRESIDENT AND CEO OF WALMART INDIA, WILL CONTINUE TO LEAD THAT PART OF BUSINESS

* INVESTMENT IN FLIPKART INCLUDES $2 BILLION OF NEW EQUITY FUNDING

* CO, FLIPKART IN DISCUSSIONS WITH ADDITIONAL POTENTIAL INVESTORS WHO MAY JOIN FUNDING ROUND

* IF ADDITIONAL INVESTORS JOIN FUNDING ROUND, IT COULD RESULT IN CO’S INVESTMENT STAKE IN FLIPKART MOVING LOWER AFTER DEAL CLOSE

* EVEN IF ADDITIONAL INVESTORS JOIN FUNDING ROUND, CO WOULD RETAIN CLEAR MAJORITY OWNERSHIP OF FLIPKART

* TENCENT & TIGER GLOBAL WILL CONTINUE ON FLIPKART BOARD, JOINED BY NEW MEMBERS FROM WALMART

* FINAL MAKE-UP OF FLIPKART BOARD HAS YET TO BE DETERMINED, BUT IT WILL ALSO INCLUDE INDEPENDENT MEMBERS

* TO FINANCE FLIPKART INVESTMENT, CO INTENDS TO USE NEWLY ISSUED DEBT & CASH ON HAND

* IF FLIPKART DEAL WERE TO CLOSE Q2-END, EXPECT NEGATIVE IMPACT TO FY 2019 EARNINGS PER SHARE OF ABOUT $0.25 - $0.30

* IN FY 2020, ANTICIPATE EARNINGS PER SHARE HEADWIND IN TOTAL OF AROUND $0.60/SHARE

* ANTICIPATE CONTINUATION OF CURRENT SHARE BUYBACK PROGRAM

* J.P. MORGAN SECURITIES LLC IS ACTING AS LEAD FINANCIAL ADVISOR FOR CO; GOLDMAN SACHS & CO. LLC ACTED AS EXCLUSIVE FINANCIAL ADVISOR TO FLIPKART Source text for Eikon: Further company coverage:

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