Softbank Group Offers 10-B.-Dlr Aid to WeWork
Tokyo, Oct. 22 (Jiji Press)--Japan's Softbank Group Corp. <9984> has offered nearly 10 billion dollars in financial assistance to The We Company, which runs the WeWork office space-sharing services, informed sources said Tuesday.
Softbank Group proposed extending 5 billion dollars in loans and investing up to 3 billion dollars to take a majority stake in the U.S. startup through a tender offer.
In addition, Softbank Group offered to accelerate the existing 1.5-billion-dollar investment plan, the sources said.
As a result, Softbank Group is expected to own nearly 80 pct of the U.S. company. But in terms of voting rights, the Japanese company will stay short of a majority holder, according to the sources.
Softbank Group does not mean to make The We Company a consolidated subsidiary, the sources added.
[Copyright The Jiji Press, Ltd.]