SoftBank Reportedly Close to Take Control of WeWork

22/10/2019 03:28:38 Stock Market

Japan-listed Softbank Group Corp. (T:9984) is close to taking over control of work space company WeWork, CNBC reported on Tuesday citing people familiar with the matter.

The deal would be worth somewhere between $4 billion and $5 billion, the people said, adding that an announcement could come as soon as later today.

After the acquisition, SoftBank will hold 70% or more control of WeWork.

SoftBank will be making up to a $3 billion tender offer along with a $1.5 billion acceleration of equity it has already committed and $5 billion in syndicated debt, CNBC said.

WeWork cancelled plans to go public in September after the company revealed a $900 million loss in the first six months of 2019 in its IPO prospectus.

The company was reportedly set to lay off at least 200 people, reports as recently as last week suggested.