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Navdeep Yadav

Tencent Buys $264M Stake In Walmart's Indian Unit

Chinese tech conglomerate Tencent Holdings Ltd. (OTC:TCEHY) has bought a $264 million stake in Walmart Inc (NYSE:WMT)-owned Indian e-commerce firm Flipkart, Press Trust of India reported.

The outlet citing official documents said the company bought shares from Indian internet entrepreneur Binny Bansal, Flipkart's co-founder, through its European subsidiary.

Bansal now holds a 1.84% stake in Flipkart after selling part of his stake to Tencent Cloud Europe BV — Tencent's European subsidiary.

See Also: Walmart Confirms IPO Plans For Indian E-Commerce Arm

The report noted that the transaction was completed on Oct. 26 last year and was shared with the authorities at the beginning of the current financial year. Tencent now holds a 0.72% stake in Flipkart through its arm.

The transaction between Bansal and Tencent took place after the July funding round, where it raised $3.6 billion, led by Singapore's sovereign wealth fund GIC, CPP Investments, SoftBank Vision Fund 2, and Walmart.

Flipkart's valuation currently stands at $37.6 billion.

Price Action: According to data from Benzinga Pro, Tencent shares closed 5.52% lower on Monday, whereas Walmart closed 1.88% lower.

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