SoftBank to Invest $ 1bn in Uber

After months of talks, the paper work is done. Japanese SoftBank Group investment has reached a deal with Uber to invest billions in the ride-hailing giant. SoftBank to Invest $ 1bn in Uber. It has been informed that it includes a $1 billion investment in the company at the last private valuation of nearly $70 billion.

The group led by SoftBank and Dragoneer Investment Group also plans to invest a much larger amount by buying up to $9 billion in Uber shares from employees and other shareholders. This will bring its total ownership to at least 14% of the company. It is expected that these shares to be purchased at a lower valuation.

SoftBank to Invest $ 1bn in Uber

It has been reported that the tender offer is scheduled to launch November 28. It would continue for approximately 20 business days. This is going to be the largest secondary transaction in history of shareholders.

Regarding this partnership, Uber Said:

“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.”

The deal will only be possible when enough Uber shareholders opt to sell shares. The long-awaited deal was publicly announced in October. But it was delayed by a corporate governance and legal dispute between investor Benchmark Capital and ousted CEO Travis Kalanick. Both sides ended their confrontation on Sunday.

Kalanick has agreed to allow a majority of board members to vote on any future appointments he makes. Currently he is controlling three of 11 seats on the Uber board.

The tender offer is turning point for the company. This is a crucial moment for team Uber.

Read Next: Uber Launches Mini Service for Karachi & Lahore