SoftBank tender for Uber stake succeeds - WSJ

A consortium led by SoftBank Group Corp will go ahead with the purchase of a major stake in Uber Technologies Inc [UBER.UL] after existing investors in the ride services company agreed to sell shares at a price that values the startup at $48 billion, the Wall Street Journal reported on Thursday.

Uber and SoftBank declined to comment on results of the tender, which expires at noon PT (3 pm ET) on Thursday.

The purchase follows several months of uncertainty and board manoeuvring at Uber, giving it a major new investor and ensuring the adoption of corporate governance standards supported by new Chief Executive Dara Khosrowshahi after a string of scandals.

Still, the price is at a 30 percent discount to the most recent valuation of $68 billion.

Uber investors and employees tendered shares equal to about 20 pct of the company, the Journal reported, citing unnamed sources. (http://on.wsj.com/2ChJNyS) SoftBank probably will limit its purchase in the tender offer to 15 percent of Uber, and other members of its group are likely to buy additional shares.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)