Basis facts of the case, I would say that the way this transaction is being executed, it is highly inefficient from tax perspective, specially for shareholders of Indian company who will be required to pay capital gains taxes on transfer of shares without receiving any consideration through cash mode. This would also involve some valuation formalities which will add to your costs and cause issues in future at the time of disposal of stake in an unlisted foreign company.
Having said that, there are alternative ways, to structure this acquisition that can help nullify the tax liability altogether, avoid valuation formalities as well as future tax related complexities which won't be possible in existing mode.
From buyer perspective, they will also be having several business benefits and future tax efficiencies.
Lastly, it will be relatively easy to secure regulatory & statutory aprovals for acquisition in the alternative approach rather than the existing one, thereby making it a win win proposition for both the parties
Feel free to reach out to me through telephonic mode for detailed discussion on this case.