SoftBank says WeWork’s tender offer is to go live on Monday

In a recent announcement, SoftBank Group Corp, which now holds over 80% stake in WeWork, announced on Sunday that the $3 billion shares of the office-sharing company as part of the tender offer will be launched this week. The offer also includes co-founder and ex-CEO’s (Adam Neumann), $970 million worth of shares.

The offer was set to be forwarded at the start of November. However, due to technical revisions required in the offer document, SoftBank had announced a delay in the tender offer till the end of the month, as per the sources.

WeWork’s Shares Will Be Priced At $19.19 Per Share

SoftBank representative further highlighted that the WeWork shares will be available at the previously agreed price of $19.19 a share and the offer can be expected to go live on Monday.

In a report on Thursday, Bloomberg highlighted that the Japanese technology investment company wishes to minimize the size of the offer as much as possible. SoftBank executives were also reported to have opinionated that Neumann’s payout in the tender offer is a little too generous.

As of Sunday, however, there is no news of negotiations between WeWork and SoftBank to modify the terms and conditions of the offer. As per the analysts, changing Neumann’s payout could have put SoftBank at the risk of lawsuits.

Spokesperson at WeWork as well as at SoftBank have refrained from commenting any further on the tender off at this stage.

SoftBank Pledged A $9.5 Billion Rescue Package For WeWork In October

Following excessive losses for WeWork that was destined to run out of cash in the upcoming months, SoftBank had pledged $9.5 billion rescue package for the office-sharing company in October. An additional $6.5 billion was also offered in debt and equity financing in order to get the business back on track. The tender offer to be launched this week, is an imperative component of the rescue package, as per the experts.

The rescue package saw SoftBank acquiring an 80% stake in WeWork and Neumann’s departure from the board that effectively ends his voting control in the American commercial real estate company.

The deal further highlights that on top of the money that Neumann will get once he sells his shares, SoftBank will also give him a line of credit worth $500 million that is likely to repay the bank loans. Neumann will also be eligible for another $185 million in the name of the advisory fee.

WeWork also announced on Thursday that it will lay off as many as 2,400 workers globally in an effort to cut costs and stabilize the business.