FILE PHOTO: The logo of SoftBank Group Corp is displayed at the SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. REUTERS/Issei Kato
(Reuters) – SoftBank Group Corp (9984.T) said it has terminated a $3 billion tender offer for additional WeWork shares agreed last year with shareholders, including ousted co-founder Adam Neumann, drawing threats of legal action from other board members.
SoftBank said in a statement it is pulling out of the offer agreed as part of last year’s bailout plan of the floundering shared-office operator.
The statement cites issues, which include a failure to recapitalize WeWork’s struggling joint venture in China, criminal and civil investigations into the startup and the impact of the coronavirus pandemic on the business.
A special committee of WeWork’s board said it was “disappointed” by the development and is considering “all of its legal options, including litigation.”
Reporting by Sam Nussey in Tokyo and Kanishka Singh in Bengaluru; Editing by Sherry Jacob-Phillips