SoftBank Threatens to Withdraw $3B WeWork Stock Deal

SoftBank Group told shareholders of WeWork that it could withdraw from an agreement to buy US$3 billion of stock in the embattled co-working business, casting doubt on a deal that had been set to close in about two weeks.

In a message to stockholders reviewed by Bloomberg, the Japanese conglomerate cited numerous government inquiries into WeWork, including those from US attorneys, the Securities and Exchange Commission, attorneys general in California and New York and the Manhattan district attorney.

SoftBank had told investors it was planning to complete the US$3 billion share purchase around April 1, after it received sign-off from antitrust authorities. Mr Neumann was allowed to tender WeWork stock worth as much as US$970 million in the offering as part of a deal the co-founder struck when he agreed to give up control of the property company to SoftBank.

The Japanese group may still go ahead with the stock purchases at a later date and will update investors again before April, one source added. 

SoftBank, which was set to own roughly 78% of WeWork after it completed the tender offer, is still contractually obliged to finance a US$3.3 billion debt package it previously agreed to fund as part of the rescue package.

Full Content: Bloomberg

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