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Last Updated : Jun 14, 2019 05:43 PM IST | Source: Moneycontrol.com

WeWork in talks to acquire majority control of its India affiliate: Report

The deal, if finalized, would be carried out part cash and part stock, and is expected to be completed as early as August.

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WeWork may acquire a 70 percent stake in its India affiliate priced at $1.9 billion, according to sources quoted in a Bloomberg report.

The report further quoted the sources saying that the deal, if finalised, would be carried out part cash and part stock, and is expected to be completed as early as August. The transaction has not been finalised and the terms are subject to change or could even be dropped.

WeWork's objective with this deal is to consolidate the financial results of its rapidly expanding India operations ahead of its IPO. WeWork India is currently being run by its brand franchisee, Buildcon, whose license ends by 2021. Its CEO is Karan Virwani, who is the son of Jitu Virwani, Chairman and Managing Director of Indian real estate developer Embassy Group.

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WeWork India is one of the most rapidly expanding markets, with companies such as Microsoft Corp. and Amazon.com in Bangalore, and Spotify Technology and Bumble using its services in Mumbai.

Co-working is quick becoming a staple in office culture. The report quoted real estate services firm JLL saying that co-working spaces took up nearly 10 percent of total office space leasing from January to September 2018, a jump from 4 percent in 2017.

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First Published on Jun 14, 2019 05:43 pm
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