Market Overview

Two Investors Want To Buy Controlling Stake In WeWork China: Reuters

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Two Investors Want To Buy Controlling Stake In WeWork China: Reuters

Two investors could purchase a controlling stake in WeWork China, sources told Reuters.

What Happened

The investors, Temasek Holdings and Trustbridge Partners, have had negotiations with WeWork China about buying more shares to own a majority stake in the company.

A takeover proposal, which valued the company at around $1 billion, was submitted to WeWork-backer SoftBank Group Corp. (OTC: SFTBY) at the end of last year, one of the sources told Reuters anonymously.

WeWork currently holds 59% of shares in WeWork China, while the rest belongs to other investors, including Trustbridge, SoftBank and Hony Capital, that WeWork China raised $500 million in 2018.

Why It Matters

If SoftBank and WeWork choose to accept the takeover proposal, it will help reduce the financial stress on the two companies.

The office-space startup is currently going through a major restructuring after its IPO failed, and CEO Adam Neumann resigned in September 2019.

Japanese firm SoftBank Group announced a $9.5 billion bailout package for WeWork in October, but talks with Japan’s top three banks stalled in December.

Price Action

Shares of SoftBank rose 0.21% to close at $44.29 on Thursday.

Photo Credit: Official WeWork Site

Posted-In: Adam Neumann ChinaNews Financing IPOs Global Media General Best of Benzinga

 

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