‘SoftBank seeking Uber stake at sizeable discount’
SAN FRANCISCO: SoftBank Group Corp and a group of investors are trying to buy a stake in Uber Technologies Inc at a sizeable discount to the company’s US$69 billion (RM283.17 billion) valuation, seeking to clinch what would be one of the largest purchases of stock in a private company.
SoftBank and partners including investment firms Dragoneer Investment Group and General Atlantic are offering to spend more than US$6 billion for a stake that would value the ridehailing company at US$48 billion, or about 30 per cent lower than the valuation it fetched in its most recent round of fundraising, according to people familiar with the deal.
Locking in the investment from Japan’s SoftBank has been a top priority for new Uber chief executive Dara Khosrowshahi, who sees the deal as a chance to close rifts and land a powerful new ally.
Uber has had an abysmal year, with its co-founder and former chief executive resigning under pressure and the company admitting it concealed a hack that exposed personal data of 57 million customers and drivers.
If it is successful, the SoftBankled coalition would buy at least 14 per cent of the shares from existing Uber investors. The purchase, along with an additional US$1 billion direct investment in the company, would make the group one of Uber’s biggest shareholders, said the people.
The SoftBank coalition will receive two board seats if the stock sale is completed.
The offer gives existing shareholders a way to sell equity and unlock some of the value that has been difficult to realise as long as the company puts off an initial public offering. Khosrowshahi has said he expects to take Uber public by 2019.
The expansion of the company’s board and other governance reforms have been attached to passage of the stock sale, upping the stakes.
The deal isn’t done, however. Shareholders will need to sell at the US$48 billion valuation. While SoftBank’s offer of about US$33 a share is 30 per cent less than Uber’s valuation at its mostrecent fundraising round, the price would represent a significant windfall for many early investors. If shareholders don’t agree to sell in sufficient numbers, SoftBank can raise the price or walk away, the people said. Bloomberg