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