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

A number of corporate reforms are tied to the deal's completion.

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.

Uber investors and employees tendered shares worth about 20 percent of the company, sources told The Wall Street Journal.

Uber said in September it was shutting down the auto-leasing business, which had run up huge losses. Dara Khosrowshahi, the former CEO of Expedia, took Kalanick's place in August after a lengthy search. The Japanese conglomerate set a threshold for its bid at 14 percent and while it's now able to purchase almost 50 percent more than it originally planned, it's reportedly limiting its offer to a 15 percent stake. The Japanese telecommunications giant acquired about 15% of the company in the deal, which valued the the company at $48 billion and included an additional $1.25 billion to buy shares directly from the company.

Getting the company ready to go public will be Khosrowshahi's ultimate goal over the next year, though it won't be easy.

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SoftBank offered $33 per Uber share.

Rajeev Misra, CEO of SoftBank Investment Advisers, said the firm was "appreciative of the support from Uber's shareholders in the successful tender offer". In a recent board agreement, Uber's directors said they expected the company to begin the IPO process by 2019. However some Uber investors were concerned the price SoftBank was offering was too low, according to Recode.

As part of the deal, Kalanick agreed that he can not fill the three board seats he controls in the future without majority approval by the board. Didi last week raised US$4 billion, including some investment from SoftBank.

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

The investment comes after a year of troubles for Uber, including a lawsuit by Alphabet Inc's self-driving auto unit Waymo, that alleges trade secrets theft, and federal investigations that include possible bribery of foreign officials in Asian countries and the use of software to evade regulators.

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