Uber’s Existing Investors Ready To Sell Shares On Softbank’s Tender Offer

According to the source, the consortium of investors would own 17.5 percent stake, out of which Softbank will own 15 percent.

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Uber Accepts Softbank's Tender Offer

Uber stated that a consortium led by Softbank Group Corp. will purchase a huge number of shares at the valuation of $48 billion on Thursday. The deal is expected to lead to several changes on how the board oversees the firm.

The shares will be purchased at 30 percent discount of the ride-hailing company’s recent valuation of $68 billion. The company has been undergoing through federal criminal offences, work-culture related issues, and high-stake lawsuits.

SoftBank Group and the rest of the consortium that includes Dragoneer Investment Group, will have an ownership of nearly 17.5 percent of Uber, according to a source familiar with the matter.

The shares will be purchased through a tender offer, from employees and earlier investors at the $48 billion valuation. Moreover, the consortium will make an investment of a $1.25 billion at the $68 billion valuation.

According to Uber, the deal will be closed by early 2018. It said that existing investors gave an approval to sell considerable shares for SoftBank to carry out the transaction.

According to another source familiar to the deal, Softbank plans to keep 15 percent stake in the company and will give remaining to consortium. A source familiar with matter outlined TPG, a private equity group was also a part of the consortium of buyers.

After the completion of the deal, the ride-hailing firm will make changes in governance, by expanding board from 11 to 17 members.

Uber will utilize the investment “to support our technology investments, fuel our growth, and strengthen our corporate governance,” said a spokesperson on the condition of anonymity.

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