Softbank to Provide 9.5 B. Dollars in Financial Aid to WeWork
Tokyo, Oct. 23 (Jiji Press)--Japan's Softbank Group Corp. <9984> said Wednesday that it will provide a total of 9.5 billion dollars in financial assistance to The We Company, which runs the WeWork office-sharing business.
The troubled U.S.-based company's board has approved the bailout from Softbank Group.
The bailout package includes 5 billion dollars in new financing and an existing 1.5-billion-dollar investment commitment, as well as a tender offer by the Japanese group of up to 3 billion dollars for shareholders of the WeWork operator.
Softbank Group said it will accelerate the implementation of the existing commitment.
Through the measures, Softbank Group is expected to take an equity stake of about 80 pct in The We Company, but its holding will likely fall short of a majority in terms of voting rights. The U.S. firm will not be a consolidated subsidiary of Softbank Group.
[Copyright The Jiji Press, Ltd.]