Amazon, the e-commerce platform, has acquired 49 per cent rarely used shares of Witzig Advisory Services. The etailer, Amazon, has acquired 17 per cent Class A shares and 32 per cent stake in Class B shares, according to the regulatory filing of Witzig.
The ROC (Registrar of Companies) filing ( of Witzig) states that every share of Class A will carry one vote whereas shares of Class B will not have any voting rights, as reported by the Indian daily news, The Economic Times.
This concludes that the etailer, Amazon has 17 per cent voting rights in Witzig Adversary Services.
In order to conform to new FDI rules, Amazon seems to employ DVR shares and will ensure More Supermarket Stores, currently acquired by Witzig, will operate in the Indian market.
As per the new FDI regulations, foreign business entities are prohibited to run a market place and have equity participation in sellers through its group companies.
The newly rolled out FDI guidelines has led Amazon to reduce its shareholdings from 49 per cent to 24 per cent in Appario as well as Cloudtail, the two top-sellers at Amazons platform.
More so, Amazon has changed his idea of acquiring stakes in Witzig Advisory Services. Earlier on, the company has decided to acquire 49 per cent but subsequently, it planned to possess less than 26 per cent stakes, as reported by the Indian daily news, The Economic Times.