A WeWork board committee that negotiated a $3 billion tender offer with SoftBank Group sued the Japanese conglomerate on Tuesday for abandoning the deal, accusing it of succumbing to “buyer’s remorse” amid the novel coronavirus outbreak.
Even without the tender offer, SoftBank and its $100 billion Vision Fund currently own 52.3% of WeWork. While most of the financing agreed in October has been provided to WeWork, some $1.1 billion of senior secured debt was contingent on the tender offer being completed.
SoftBank has so far invested more than $13.5 billion in WeWork. It has been under growing financial strain, with souring tech bets bringing it under pressure from activist investor Elliott Management and pushing it into a radical pledge to raise $41 billion by selling down core assets to raise cash for share buybacks and to reduce debt.
The only winners in this fight will be the lawyers, as both companies have quite a bit of I.O.U's.
Submitted April 07, 2020 at 06:32PM by COMPUTER1313 https://ift.tt/2VbKio3
