Flipkart’s employees are in for some huge dividends for their continued faith and dedication to the company. As a part of the Wlamart acquisition that is taking place, Walmart is set to buy ESOPs worth $800 Million, from Flipkart’s overall pool of over $1.5 Billion ESOPs.
According to a filing done by Walmart with the US Securities and Exchange Commision (SEC), the retail giant is obligated to purchase 6,242,271 shares from Flipkart’s ESOP pool of 11,947,026 shares, as part of the $16 Billion acquisition deal. Flipkart on its end, has announced in a letter to current employees that they will be allowed to liquidate their employee stock ownership plans (ESOPs) at $126-128 a unit, depending on the charges applicable.
In an emailed statement, a Flipkart spokesperson said,
The ESOP repurchase programme, a yardstick for the industry, is part of our continuing efforts to thank and reward our employees for their service
The liquidation process in itself though, will at least take two years to complete. Employees will be allowed to liquidate 50% of their vested ESOPs following the close of the Walmart-Flipkart transaction, another 25% at the end of one year following the first liquidation, and the remaining 25% at the end of two years following the first liquidation.
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