Japanese Telecom Company Acquires 15% Of Uber
Although ride sharing giant, Uber is yet to gain full traction in Japan, it has sold 15% equity stake to the country’s multinational telecommunications company.
The deal has been in the works for months now but only got sealed on Thursday, allowing SoftBank some15% of Uber's equity, by acquiring shares from early investors.
But this deal has now cut the estimated value of Uber by 30% since the deal allowed SoftBank to acquire the 15% equity at a discount of 30% from its most recent value.
Sources familiar with the terms of the deal said the new investment, which will be finalized in January, is part of an effort by Uber to move past a series of scandals and missteps and reform its board structure as it gears up for a 2019 public share offering.
The two firms did not provide details of the valuation, but the source said the investment was based on Uber's worth of $48 billion, down from $71 billion earlier this year.
"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," Uber said in an emailed statement.
A separate statement from Rajeev Misra, chief executive of SoftBank Investment Advisers, said, "We are appreciative of the support from Uber's shareholders in the successful tender offer and look forward to closing the overall investment in January."
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