WeWork sells con­trol of its China di­vi­sion

Arab News - - Business News -

U.S. of­fice-shar­ing firm WeWork on Thurs­day said it will sell con­trol of its China di­vi­sion to one of its in­vestors, pri­vate eq­uity firm Trust­bridge Part­ners, as it steps back from a com­pet­i­tive mar­ket where it has suf­fered low-oc­cu­pancy rates.

The deal ef­fec­tively off­loads the China unit away from the par­ent, which has faced fundrais­ing is­sues since a failed at­tempt to go public in 2019. WeWork said it will main­tain a mi­nor­ity stake and “par­tic­i­pat­ing in­ter­est” in WeWork China and that it will re­ceive an an­nual fee from the unit for use of the WeWork brand.

Con­cur­rent with the deal, the di­vi­sion has re­ceived $200 mil­lion in fund­ing from ex­ist­ing in­vestors, WeWork said. Michael Jiang of Trust­bridge Part­ners will serve as WeWork China’s act­ing chief ex­ec­u­tive of­fi­cer.

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