Softbank planning huge USD10 billion stake in Uber
Uber Technologies has sealed a deal for a huge multibillion-dollar stake by SoftBank Group Corp.
Softbank will pump up to $1 billion in Uber and then plans to buy up to $9 billion in shares from existing investors.
"We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment," Uber said in a statement.
"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."
The investment, which is one of the biggest single deals ever for a startup, comes with various caveats over boardroom governance and speeding up reforms in the scandal-hit company.
That will pave the way for a possible 2019 IPO.
After an initial $1 billion cash injection, the Softbank-led group will then set an initial tender price for existing shares.
It may also be the largest private stock sale ever, Bloomberg reports, and will give Softbank at least 14% of the company, which is currently valued at about $69 billion.
If it doesn’t get enough takers at the tender price, it may make an improved offer or simply walk away.
If it succeeds SoftBank will have a major influence in ride hailing right around the world.
It is a leading investor in India’s Ola and Grab in Southeast Asia, and agreed to invest about $5 billion in China’s $50 billion ride-hailing startup Didi Chuxing.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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