REUTERS: SoftBank Group Corp said it has terminated a US$3 billion tender offer for additional WeWork shares agreed last year with shareholders, drawing threats of legal action and plunging the floundering office space company further into crisis.
SoftBank's decision to rescind the offer means the Japanese firm is no longer obligated to proceed with a further US$1.1 billion in debt financing for WeWork. It also underscores the depth of the disarray at WeWork, which is undergoing a drastic restructuring and whose earnings are at risk as many countries impose orders to stay at home due to the pandemic.
The startup, which lost US$1.25 billion in the third quarter, told investors last week that it had US$4.4 billion in cash and cash commitments and would be able to weather the economic downturn.The tender offer, which would have mostly benefited a select group of shareholders including ousted co-founder Adam Neumann, had been agreed in October as part of bailout plan by SoftBank after WeWork's IPO plans flopped.
SoftBank said in its statement that there were"multiple, new, and significant" pending criminal and civil investigations in which authorities have also requested information about WeWork's financing activities and communications with investors.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork troubles deepen as SoftBank pulls US$3 billion tender offerSoftBank Group Corp said it has terminated a US$3 billion tender offer for additional WeWork shares agreed last year with shareholders, drawing ... 😂😂😂👍👍👏👏👏 Poof, billions gone in a couple years with WeWork.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
SoftBank to abandon US$3 billion deal for additional WeWork sharesJapan's SoftBank Group Corp will not complete a US$3 billion tender offer for additional WeWork shares agreed last year with its shareholders, a ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
SoftBank to abandon $3 billion deal for additional WeWork shares'The Special Committee of the Board of Directors of WeWork has been advised by SoftBank, the controlling shareholder of WeWork, that it will not consummate the tender offer which it agreed to in October of 2019,' it said in a statement, adding it was 'disappointed' by the development
Source: YahooSG - 🏆 3. / 71 Read more »
WeWork troubles deepen as SoftBank pulls US$3 billion tender offerSoftBank Group Corp said it has terminated a US$3 billion tender offer for additional WeWork shares agreed last year with shareholders, drawing ... 😂😂😂👍👍👏👏👏 Poof, billions gone in a couple years with WeWork.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
SoftBank to abandon US$3 billion deal for additional WeWork sharesJapan's SoftBank Group Corp will not complete a US$3 billion tender offer for additional WeWork shares agreed last year with its shareholders, a ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
SoftBank to abandon $3 billion deal for additional WeWork shares'The Special Committee of the Board of Directors of WeWork has been advised by SoftBank, the controlling shareholder of WeWork, that it will not consummate the tender offer which it agreed to in October of 2019,' it said in a statement, adding it was 'disappointed' by the development
Source: YahooSG - 🏆 3. / 71 Read more »