As soon as this week, SoftBank Group Corp. is expected to proceed with an offer to buy billions of dollars worth of shares from Uber Technologies Inc.’s stakeholders.
First it must settle on an offer price, only days after Uber disclosed a security breach involving 57 million accounts that took place a year ago and prompted regulatory scrutiny from government agencies around the world.
Uber’s decision to keep quiet about last year’s data breach until earlier this week raises the prospect that the incident could affect SoftBank’s offer price. SoftBank 9984, +1.40% learned of the hack about a month ago, which may have changed its evaluation of Uber’s shares, according to people familiar with the matter. Some investors and observers say corporate breaches are becoming so routine that they shouldn’t weigh on a company’s valuation, though Uber’s string of controversies this year has given shareholders reason to question what’s next.
A group of investors led by SoftBank plans to launch an effort in the coming days to buy at least 14% of the ride-hailing firm from existing shareholders through the tender offer at a steep discount, as well as through a direct investment of at least $1 billion at Uber’s prior $68 billion valuation. The investor group includes Dragoneer Investment Group and General Atlantic.
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