Uber is hailed as Japanese group buys $9bn stake

A CONSORTIUM led by Japan’s Softbank has secured a 17.5 per cent stake in ride sharing firm Uber for about $9billion (£6.7billion).

Softbank is expected to pay in the region of £5.7billion in order to take a 15 per cent shareholding in Uber, while the remaining investors – which reportedly include Dragoneer, Tencent, TPG and Sequoia – will shell out £740million for 2.5 per cent.

The transaction is believed to value Uber at about £36billion. Uber is looking to complete the deal early next year.

It said: “We look forward to working with the purchasers to close the overall transaction, which we expect to support our technology investments, fuel our growth, and strengthen our corporate governance.”

Once the deal is completed, Uber’s board will expand from 11 to 17 members after taking on two Softbank members, adding three new independent seats and one independent chairperson.

Uber confirmed in mid-November that it was entering an agreement with the investor group, saying it would help fuel technology investments and further expansion. It is also set to pave the way for the company’s anticipated stock market flotation.

There will be a resolution on taking the company public in 2019, contingent on the closing of the Softbank consortium deal.

Softbank chief executive Rajeev Misra said: “We have confidence in Uber’s leadership and employees and are excited to support Uber as it continues to reinvent how people are transported around the world.”

The news comes as the ride-hailing firm battles increased competition in the US, where rival Lyft has recently gained backing from Google.

In the UK, Uber is fighting to keep its service running in London.

Transport for London (TfL) stripped the ride-hailing firm of its licence in September, raising a number of concerns over Uber’s conduct. Uber’s appeal against TfL’s decision not to renew its licence will be heard in the spring.

‘We have confidence in its leadership’