Temasek and others like to acquire majority stake in WeWork China

NetEase Technology News on January 17, according to foreign media reports, according to three people familiar with the matter, Singapore ’s Temasek Holdings and Shanghai Trustbridge Partners have engaged with WeWork China to increase their stake negotiation.

The people familiar with the matter said that Temasek and Zhixin Capital submitted their acquisition proposal to WeWork’s major shareholder, Japan’s SoftBank Group, at the end of 2019. Their valuation of WeWork’s China business is about $ 1 billion. The two agencies hope to buy more shares in order to obtain a majority stake in WeWork China.

WeWork currently holds 59% of its Chinese subsidiary, with the remaining shares held by other investors such as SoftBank, Hony Capital and Zhixin Capital. In July 2018, WeWork China raised US $ 500 million from Temasek, Zhixin Capital, SoftBank, and Hony Capital. At that time, the company was valued at approximately US $ 5 billion.

The new transaction, which gives Temasek and Zhixin Capital a majority stake, may mean that WeWork China will experience “discount financing”, that is, a decline in valuation in the new financing, but this may significantly reduce the financial burden of WeWork and SoftBank.

The negotiations are still at an early stage, and it is uncertain whether a final agreement can be reached. SoftBank, Temasek and WeWork all declined to comment. Zhixin Capital did not immediately respond to a request for comment.

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