Zee Media Bureau
New Delhi: Home-grown handset maker Micromax is in talks to sell one-fourth stake to Chinese e-commerce major Alibaba, as per a report in a national financial daily.
Micromax is all set to sign an agreement with Alibaba “for about $700 million (Rs 4,200 crore)”, the Economic Times, quoting sources, reported.
The newspaper said that while the legal documentation related to the deal is in process, it might take two weeks for finalisation. The paper further added that the company might soon make an announcement regarding this.
Earlier, in April, Micromax had said that it is looking at raising funds to beef up its war chest for strategic acquisitions and ruled out the possibility of its founders exiting the firm.
However, the company confirmed that it is looking to raise funds but “Nobody is exiting”. Micromax co-founder Vikas Jain had said, “Founders are absolutely not exiting”.
He added that the four co-founders (Vikas Jain, Rahul Sharma, Rajesh Agarwal and Sumeet Kumar) hold about 80 percent stake in the company.
The remaining 20 percent is held by TA Associates, Sequoia Capital, Sandstone Capital and Madison India Capital.
