Money

Uber takes over Middle East rival in £2.35 million deal



Uber is spend $3.1 billion (£2.35 million) to acquire Middle East rival Careem ahead of its hotly anticipated initial public offering.

The taxi-hailing app firm said it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. It ends more than nine months of negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.

The notes will be convertible into Uber shares at a price equal to $55 each, a nearly 13% increase over Uber’s share price in its last financing round more than a year ago.

The $3.1 billion cash-and-stock purchase buys out all outside Careem investors, the companies said, and Careem stock will be converted into Uber equity.

Careem had raised less than $800 million from investors and as of October had a $2 billion valuation. Its backers include German car maker Daimler AG, Chinese ride-hailing company Didi Chuxing, Japanese internet company Rakuten Inc and Saudi investor Kingdom Holding Company.

The deal is expected to close in the first quarter of 2020, meaning it will not be reflected in Uber’s first couple of quarterly earnings releases as a public company, although it will likely be disclosed in a public IPO filing.

Uber will kick of its IPO next month with an expected valuation of at least $100 billion.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.