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Softbank Group cancels tender offer for WeWork

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02 Apr 2020 12:04:00 GMT9
02 Apr 2020 12:04:00 GMT9

TOKYO: Japan's Softbank Group Corp. said Thursday it has canceled its tender offer for up to 3 billion dollars worth of shares in The We Company, or WeWork, which runs office space-sharing services.

Softbank initially planned to acquire the shares mainly from the founder of the U.S. firm and major institutional investors. But the plan did not work out as necessary conditions have not been met.

In October last year, Softbank pledged to provide 9.5 billion dollars in financial assistance to WeWork mainly through the tender offer, loan programs and the undertaking of bonds. The Japanese and U.S. firms agreed on conditions of the tender offer at the time.

Softbank said Thursday that it decided to terminate the tender offer, because regulatory investigations into the initial public offering that WeWork canceled last year are continuing and WeWork's operations have been hampered by the coronavirus pandemic.

The end of the tender offer "has no impact on WeWork's operations or customers," Softbank Group said in a statement.

JIJI Press

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