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SoftBank Group withdraws $3 bil. tender offer plan for WeWork
Original source: english.kyodonews.net
The Japanese investment giant said it had scrapped part of the rescue scheme as "certain conditions to the tender offer were not satisfied," citing the New York based-company's failure to obtain the necessary antitrust approvals by Wednesday.
SoftBank Group said in a statement that the termination of the tender offer will have no impact on WeWork's operations, customers and its five-year business and strategic plan.
Under an agreement between the two companies last October, SoftBank pledged to provide up to $9.5 billion to WeWork, including the $3 billion tender offer for existing shareholders and additional $5 billion funding.
SoftBank Group had previously planned to acquire about an 80 percent stake in WeWork but not to hold a majority of voting rights and make the operator a subsidiary.
WeWork decided to accept the rescue plan offered by SoftBank Group after withdrawing its initial public offering plan last September as its mounting losses raised doubts about its business outlook.