SoftBank’s 1.2 billion dollars primary and direct investment deal with Uber has already been closed.
The SoftBank’s 1.2 billion dollars primary and direct investment deal has already been closed. This news has been released by the Uber Company itself which has already confirmed its closure. The company is now owing around 15% of the shares in Uber and it has purchased the shares at a discount of around 30%.This is quite a massive and a prolonged deal of Uber which had been signed with the SoftBank making an end to the contentious procedure that will be making this Japanese conglomerate one of the largest single shareholders in the Uber company.
This deal would enable the company to bring all its services to more and more consumers throughout the world
The SoftBank will now be in a position to usher some of the sweeping changes in the governance of the Uber too. Well, the SoftBank had already acquired around 15% of the stake in the Uber through the direct investment in it and also through the purchase of the shares of the existing shareholders of the company. The SoftBank and also the consortium of few of the other investors had purchased the stakes in Uber at discounted rates which is valuing the company now at around $4.8 billion.
SoftBank now owes around 15% of the shares in Uber
This is something which is around 30% lower than its earlier private valuation amounting to $68 billion. Few of the other investors in the consortium which is being led by the SoftBank include the Dragoneer Investment group which has bought 5% of the shares. Well, this is a kind of the great outcome for all the stakeholders and it would also strengthen the governance of the company too which would now be doubling down on the technology, investments. It would enable the company to bring all its services to more and more consumers throughout the world.
Most of the equity is coming from existing shareholders and now they would be cashing around some of their investments too
Well, most of the equity is coming from the existing shareholders and they would be cashing around some of their investments too. This Uber-SoftBank deal would be witnessing the payments for the secondary sale which is being processed and which is being distributed. There will also be the changes in the governance that the company promised as it will be the part of the deal structure too and it has already come into effect from last week.
Now the largest shareholder in this ride-sharing company is SoftBank and it will be holding its new board position
So now the founder of Uber, Travis Kalanick is a billionaire as he had sold 30% of his stakes in the company. Now the largest shareholder in this ride-sharing company is SoftBank. It will be holding its new board position and will be helping Uber for its already planned initial public offering in the year 2019.