Don’t miss the latest developments in business and finance.

SoftBank offering to buy Uber shares at 30 percent discount: source

Image
Reuters SAN FRANCISCO
Last Updated : Nov 28 2017 | 7:05 AM IST

By Heather Somerville

SAN FRANCISCO (Reuters) - Japan's SoftBank Group Corp is offering to purchase shares of Uber Technologies Inc [UBER.UL] at a valuation of $48 billion, a 30 percent discount to its most recent valuation of $68.5 billion, a person familiar with the matter said on Monday.

The investment, which has been approved by the Uber board, would give the Japanese investor up to 17 percent of the ride services company. The offer comes as Uber is trying to improve corporate governance and cut the influence of former Chief Executive Travis Kalanick.

A second person said the offer price was in line with what investors had been expecting. SoftBank is also expected to make a separate $1 billion investment in the company at the $68.5 billion valuation.

SoftBank is making the tender offer on Monday, the sources said. Even at the discounted price, Uber is one of the world's most valuable companies, and the offer is a chance for early investors to lock in substantial profits.

Bloomberg reported the offer price earlier on Monday.

Also Read

(Reporting by Heather Somerville and Liana B. Baker; Editing by Peter Henderson and Richard Chang)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

More From This Section

First Published: Nov 28 2017 | 6:57 AM IST

Next Story