Bloomberg recently reported that WeWork has been exploring a deal to take majority control of its affiliate WeWork India ahead of the US-based company's plans to go public.
The article stated that WeWork is in negotiations to purchase aproximately 70% of WeWork India at a valuation of about $2.75 billion. Although the terms of the deal are not yet finalized, the cash-and-stock deal, $1.9 billion stands to close as early as August of this year.
WeWork India is a brand franchisee controlled by Buildcon LLP, which is owned by real estate billionaire Jitu Virwani and his son Karan Virwani. The elder Virwani is chairman and managing director of Bangalore-based Indian real estate developer Embassy Group, while Karan is WeWork India CEO. The license ends in 2021.
Adding India to its asset portfolio may benefit WeWork as it preps for its initial public offering. It’s aiming to avoid the kind of rocky start Uber Technologies Inc. endured after it went public in May. Its swooning shares cast a shadow over the unicorns like WeWork that are seeking to raise money from public investors for the first time.
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