WeWork Cos. Inc. shareholder SoftBank Group Corp. is set to provide financing support of approximately $5 billion to the coworking giant's parent, The We Co., which is facing a cash crunch after its recently postponed IPO, the Nikkei Asian Review reported.
The Japanese group plans to invest in the office-rental company directly instead of using its roughly $100 billion Vision Fund.
Under the proposal, The We Co. would not become a SoftBank unit, and the Japanese lender would get a larger stake in the company but not a majority in terms of voting rights, according to the report.
The We Co. has reportedly voiced concerns regarding the terms of a potential $5 billion debt package led by JPMorgan Chase, as it includes high interest rates.
The We Co. is expected to make a decision between the two potential $5 billion funding offers soon, the report added.