San Francisco, By MercuryNews: The Uber board agreed on Sunday that it paves the way for a consortium of investors led by the Japanese conglomerate SoftBank to buy a significant stake in the giant of the race, prompting Uber to become a public company Press reports.
Softbank’s Uber-led consortium investment could be worth up to $ 10 billion, Reuters said, citing two anonymous individuals familiar with the matter.
Under the agreement, SoftBank and its investors will buy at least 14 percent of Uber through a mix of new and existing stocks, according to the Wall Street Journal and the New York Times.
“We reached an agreement on a possible investment with a consortium led by SoftBank and Dragoneer,” a spokesperson for Uber wrote in a statement sent to the news agency by e-mail on Sunday. “We believe this agreement represents a strong vote of confidence in Uber’s long-term potential and, ultimately, will help drive our technology investment and expansion into domestic and overseas markets while strengthening our corporate governance.” ,
The agreement comes after Uber General Manager Dara Khosrowshahi said at a conference on Thursday that the mobile phone company would go public in 2019.
The Sunday agreement states that SoftBank will buy $ 1 billion in new shares valued at Uber’s current valuation of $ 68.5 billion, but the Softbank consortium will receive the majority of its shares in Uber build up the purchase of current shares. Uber of the investors to reach the 14 percent mark.
The purchase of existing shares will take place through a public offer, which can take at least one month. During this process, a price is set for the shares to be sold, the New York Times reported.
SoftBank did not respond immediately to a request for comments. Benchmark, one of the first Uber investors to have a seat on the board, could not be reached for comment.
The SoftBank agreement will also act as a peace agreement between the opposing sides of the Uber Board, including founder Travis Kalanick, who resigned in June after months of scandals and controversy within the San Francisco-based company.
As part of the agreement, Benchmark will file a lawsuit against Kalanick and withdraw it once the bid is completed. In return, Kalanick will allow Board Directors to vote for their elected officers in the future, according to the Wall Street Journal. Kalanick has two seats more than him.
SoftBank, which holds stakes in other overseas companies in the US, will receive two overseas board seats once the bid is closed, according to The New York Times.
In October, Uber’s board carried out extensive corporate reforms, proposed by the new CEO of Uber, Khosrowshahi and Goldman Sachs, who launched the SoftBank agreement and IPO plans for 2019. Kalanick and Benchmark in the Board disproportionately held by the elimination of special voting rights in two categories of shares of Kalanick.
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