SoftBank Succeeds in Tender Offer for Large Stake in Uber

SoftBank Succeeds in Tender Offer for Large Stake in Uber

SoftBank Succeeds in Tender Offer for Large Stake in Uber

SoftBank's tender offer for Uber resulted in a resounding success and has convinced stakeholders to offer to sell as much as 20 percent of the ride-hailing service provider, The Wall Street Journal reported Thursday, citing people with knowledge of the development.

Uber said the investment would fuel its expansion and technology investments.

More than anything, however, SoftBank's presence on the board of Uber should help bring an end to the in-fighting that has plagued the company all year.

While SoftBank played hardball with Uber, it promised investors it would cover the price difference for them if the final sale price came in over $33 a share, according to a clause in the documents detailing the terms of the agreement.

Uber hasn't had a great year.

SoftBank founder Masayoshi Son has taken a keen interest in ride-hailing companies around the world
SoftBank founder Masayoshi Son has taken a keen interest in ride-hailing companies around the world

The change is expected to reduce the influence of former chief executive Travis Kalanick, who was ousted from the top role in June but remains a board member.

SoftBank and its co-investors have successfully acquired at least 13 percent of Uber, a major victory for Uber's new CEO and one that will give billions of dollars in cash to some of the company's earliest investors and employees.

The group will buy most of the shares from early investors in a deal that values Uber at about $48bn (£35.7bn).

The tender offer values Uber at $48bn (£36bn), nearly a third lower than its most recent valuation of $69bn. It will also buy $1 billion of shares directly from Uber at the older $70 billion valuation.

"We have tremendous confidence in Uber's leadership and employees and are excited to support Uber as it continues to reinvent how people and goods are transported around the world", Rajeev Misra, chief executive of SoftBank Investment Advisers and a director at SoftBank Group Corp., said in a statement. SoftBank will occupy two seats on the company's board and will now be an extremely influential player in decisions at Uber.

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