A team of investors led by SoftBank Group has made an offer to buy Uber shares in an offer that would value the company at a 30% discount to Uber's latest private valuation of almost $ 70 billion, a source with knowledge of the proposed agreement tells TechCrunch. We are hearing that the proposed share price is $ 32.95, which is equivalent to less than $ 50 billion.
Bloomberg reported for the first time on the latest development, which follows months of talks on a direct investment in the travel company and a large purchase of the shares of existing shareholders.
If Uber signs the offer, it will be the necessary approval to move forward with what is expected to be the largest secondary transaction in history. Uber already announced a few weeks ago that is advancing with the process, specifically that "entered into an agreement with a consortium led by SoftBank and Dragoneer on a possible investment."
The agreement would include an investment of $ 1 billion directly in Uber from the last private valuation. The public offering would also be up to $ 9 billion of shares of existing shareholders. Earlier this month, we reported that the group led by SoftBank would want to have at least 14% of the company. It is a package and the company will only receive the investment if the secondary transaction is also carried out.
They tell us that thousands of current employees will be eligible to sell shares. Other Uber shareholders, including venture capitalists, angel investors and former employees, may also be eligible.
This will finally give more employees the opportunity to convert paper money into cash. Until recently, most of Uber's shareholders could not sell. The $ 1 billion investment in the company will also help the company continue to drive its growth as it prepares to grow in public by 2019.
This is a great time for Uber, in what has been a very difficult year . Uber has had legal battles, including a patent suit with Alphabet's driverless car division and public protests about his company's culture. Co-founder and CEO Travis Kalanick was pressured to resign in June.
If the deal is completed, the investor and board member Benchmark Capital has agreed to abandon its claim against Kalanick. The lawsuit related to Kalanick's power to appoint three board seats, including his.
Kalanick recently appointed Ursula Burns and John Thain to those seats. If one of them resigns from his position, Kalanick will require a vote from the board to appoint a replacement, provided that the SoftBank agreement is finalized.
Featured image: Visual China Group feature