Softbank offer values Uber at 30% discount

A SoftBank Group-led team of investors has made an offer to buy app-based cab aggregator Uber's shares in a tender offer that would value the company at about a 30 per cent discount to its last private valuation of nearly USD 70 billion.

According to TechCrunch.com, the proposed price for Uber's shares is USD 32.96 per share which roughly amounts to USD 50 billion.

If Uber signs off on this offer, it would make this transaction the largest secondary transaction in history.

A few weeks ago, Uber had already announced that it would "enter into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment".

This package deal includes a USD 1 billion investment at Uber's last private valuation, which is contingent on the secondary happening.

The tender would include nearly USD 9 billion of shares from existing shareholders, which is the amount needed to get the SoftBank-led group its desired 14 per cent in the company.

Uber employees with at least 10,000 of vested shares will be eligible to sell.

Moreover, other Uber shareholders, which include venture capitalists, angel investors and former employees could also be eligible.

But, it is also possible that if SoftBank does not find enough sellers at the USD 32.96 share price, that they may raise the price to meet the desired 14 per cent ownership.

Earlier, in August, Uber chose former Expedia CEO Dara Khosrowshahi to take charge as its new chief, putting an end to months of retrospection over finding a successor to Kalanick.

While the board was reportedly in favour of Hewlett Packard Enterprise Chief Meg Whitman taking over, they finally decided on Khosrowshahi for the position of CEO.

However, in a move to retain the powers that come with his position, Kalanick, in September, named two new members to the company's Board of Directors, thus paving the way for them to gain voting rights in the million-dollar firm.

Kalanick announced the appointment of Ursula Burns, former CEO and Chairwoman of Xerox, and John Thain, who has served as CEO of CIT Group, Merrill Lynch and the New York Stock Exchange.

If the above deal with SoftBank Group-led team of investors is completed, investor and board member Benchmark Capital has agreed to drop its lawsuit against Kalanick.

The lawsuit related to Kalanick's power to appoint three board seats, including his own.