Uber confirms SoftBank has agreed to invest billions
The long-anticipated SoftBank Group investment into
Uber has been agreed upon, a spokesperson confirms to TechCrunch.
We've been provided the following statement.
“We’ve
entered into an agreement with a consortium led by SoftBank and
Dragoneer on a potential investment. We believe this agreement is a
strong vote of confidence in Uber’s long-term potential.
Upon closing,
it will help fuel our investments in technology and our continued
expansion at home and abroad, while strengthening our corporate
governance.”
Uber
has not yet elaborated on plans, but we've been told that it includes a
$1 billion investment in the company at the last private valuation of
nearly $70 billion. A source with knowledge of the deal told TechCrunch
that the documents label this as an extension of its last Series G
round.
The
group led by SoftBank and Dragoneer Investment Group is also planning
to invest a much larger amount by buying up to $9 billion in Uber shares
from employees and other shareholders, bringing its total ownership to
at least 14% of the company. These shares are expected to be purchased
at a lower valuation.
We're
told that the tender offer is slated to launch November 28 and would
continue for about 20 business days. This is likely to be the largest
secondary transaction in history.
Technically,
the deal will only be done once enough Uber shareholders sign up to
sell shares. We're told it's unlikely to have a problem finding sellers.
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