The Strategist

WeWork files lawsuit against SoftBank


04/08/2020 - 03:28



The committee of the board of directors of the American coworking service WeWork filed a lawsuit against the main shareholder - the Japanese holding SoftBank and the investment fund Vision Fund - because of the refusal to buy back the stock for $ 3 billion.



Ajay Suresh
Ajay Suresh
The lawsuit states the holding “conducted a deliberate campaign to avoid a final decision on the takeover” Financial Times writes.

“Failure to comply with SoftBank’s public offer constitutes a clear violation of its contractual obligations under the master transaction agreement, as well as a violation of SoftBank’s obligations to minority shareholders of WeWork, including hundreds of current and former employees,” WeWork’s statement reads. SoftBank and Vision Fund declined to comment.

In the summer of 2019, WeWork was estimated at almost $ 50 billion, was considered one of the most promising startups and was preparing for an IPO. However, then investor interest in the company fell sharply, the management of the service was sharply criticized, and its cost decreased to $ 8 billion. As a result, in October SoftBank, the largest shareholder of WeWork, agreed that it would take the service under its full control.

source: ft.com




More
< >

Friday, August 7th 2020 - 07:50 Etihad loses $520M in Q2 2020 due to pandemic