Trustbridge, Temasek Bids $1 billion in WeWork China

Trustbridge, Temasek Bids $1 billion in WeWork China

Temasek Holdings and Trustbridge have held talks with WeWork China over rising their stake in the China department of the troubled co-working startup to take majority possession, three folks familiar with the matter said.

The bid was submitted to WeWork’s primary stakeholder, Japanese technology conglomerate SoftBank, at the end of last year, stated one of many individuals, who requested not to be named as the talks are private.

Singapore state investor Temasek and Shanghai-based private equity agency Trustbridge want to buy extra shares to give them a mixed majority stake in WeWork China, according to the sources.

WeWork presently owns 59% of WeWork China, with the remainder held by other traders, including SoftBank, Hony Capital, and Trustbridge, based on the group’s prospectus for its initial public offering (IPO).

The Chinese unit had bagged $500 million in July 2018 from investors together with Temasek, Trustbridge, SoftBank, and Chinese fund Hony Capital in a contract valuing the agency at about $5 billion.

That was the second round, with the agency having previously attracted $500 million in 2017.

A new contract giving Temasek and Trustbridge a majority stake would seemingly mean that WeWork China would undergo a down round – a drop in valuation following a new investment if the proposal passed – however, it may considerably ease the financial strain on WeWork and SoftBank.

SoftBank, Temasek, and WeWork refused to remark. Trustbridge didn’t instantly respond to a request for remark.

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