WeWork Inc’s plans fail to work out
WeWork Inc.’s plan to sell the 27% it holds in its Indian unit and exit the country has collapsed, according to three people aware of the matter. This comes after the Competition Commission of India (CCI) had approved the proposal.
Along with the bankruptcy-hit WeWork Inc., the coworking firm’s local partner WeWork India, promoted by Bangalore-based realtor Embassy Group, was also slated to divest a 13% stake to a consortium of investors including the Enam group family office, A91 Partners and CaratLane founder Mithun Sacheti in a Rs 1,200 crore secondary transaction, as reported first by ET on April 22. The Indian real estate group holds 73% in the India unit while WeWork Inc. owns the rest.
The deal cleared by the regulator, as per a June 18 order, involved a two-step process that would see WeWork Inc. and Embassy together selling a stake of about 40% to new investors.
“The transaction didn’t go through due to a valuation mismatch even after the regulatory nod came in from the Indian antitrust body,” said one of the persons cited. The Embassy Group was supposed to acquire the 27% stake held by WeWork US in the India business and subsequently bring in investors as the company prepared a plan to go public.
Karan Virwani, CEO of WeWork India, is holding talks with 360 One, formerly IIFL, to buy some part of the 27% stake held by WeWork Inc in the Indian unit, according to the people cited above.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, Developer
