New Delhi: Flipkart employees will be able to cash their vested stock options at $125-129 per share once Walmart Inc. completes its $16-billion acquisition, India’s largest online retailer wrote to its employees.
Employees can liquidate their stock options in three instalments—half on the date of closing of the Walmart deal; 25% a year later, and the rest two years after the first liquidation.
“The liquidation of vested Employees Stock Options (ESOPs) would be at a price reflective of the transaction price, which would be in the range of $125 to $129 per option," Flipkart emailed its employees on 11 May. Mint has seen a copy of the letter.
The exact price point will be declared on the closure of the transaction between Flipkart and Walmart and then, employees will be able to liquidate their vested Esops in instalments.
At the rate of $125 per share, an employee with 10,000 shares should make Rs8 crore before tax. However, Flipkart cautioned employees that the repurchase events are “contingent on, and subsequent to, the closure of the proposed transaction with Walmart and approval of board of directors".
Flipkart is expecting the closure of transaction and regulatory approvals over the next 60 to 90 days.
In its email, Flipkart also said that “this is in line with our overall rewards philosophy of wealth creation for all our employees who have contributed to the journey with Flipkart this far."