The JAPAN corporation Softbank offered to buy Uber shares 30 percent lower than the estimated value of that $ 68.5 billion company, reports Reuters from a person familiar with the case.
The investment, which was approved by the Board of Uber in October, would also trigger a number of changes in the management of this technology company for brokerage services. Among other things, the former power of individual shareholders in the decision-making process would be limited, the board of directors would expand from 11 to 17 members, and the influence of former executive director Travis Kalanicka would also be minorized.
They plan to take at least 14 percent of the company
Investments and moves by the board of directors are also backed by the new CEO Dara Khosrowshahi, coming to the end of the year marked by scandals and changes in the company, including the past acknowledgment that at the end of last year were hacked data by 57 million Uber service users, .
The investor consortium, led by Softbank and the Dragoneer investment fund, plans to take a stake of at least 14 percent in Uber. The buyout will be announced today, reports Reuters from sources, and investors will have about a month to respond.
Softbank would get two seats in the board of directors
The group of investors led by Softbank would get two new seats in the new board of directors, while the remaining four would belong to independent directors.
In the event that the interested sellers are not enough, Softbank can still give up work. The Japanese company also plans to invest $ 1 billion in the company at an estimated market value of $ 68.5 billion.
Estimated the value of the company at $ 48 billion
Even at a reduced price, Uber is the second-largest private company-funded company in the transport services sector, following the Chinese Didi Chuxing platform, and is a chance for early investors to secure significant profits, and for employees to monetize stocks that have so far had value only on paper.
According to Softbanka’s offer, Uber is worth about $ 48 billion, and not $ 68.5 billion, as shown in the previous year’s estimate.
Since more than a year ago, the market value of the company was estimated at $ 68.5 billion Uber faced numerous scandals, including allegations of sexual harassment. Also, he was found guilty of software scams for regulatory fraud and bribery of government officials in Asia, while Alphabet’s Department of Self-Employed Cars Waymo was sued by Uber for stealing business secrets.