Flexible workspace provider WeWork Cos. Inc. is in negotiations to buy back an at least 51% stake in its Indian business in a deal that could be worth US$1 billion, The Times of India reported, citing people directly aware of the matter.
WeWork India is managed, via a licensing deal, by local property company Embassy Group's chairman and managing director, Jitu Virwani. The Indian real estate tycoon and his team will discuss terms of the potential deal with WeWork and its co-founder, Adam Neumann, in late January, the publication reported Jan. 9.
The coworking company is looking to take back the stake before the licensing deal expires in 2021. The number of shares for sale is not pre-determined and will depend on valuation, the report added, citing one of the sources.
Embassy Group has developed 35,000 desks across 17 sites for WeWork India and is planning to reach 90,000 desks by December-end to achieve its target two years earlier than the original 2021 deadline. If this target is met by the year-end, WeWork India could be valued at up to US$2 billion, one of the sources told the newspaper.
WeWork recently secured an additional US$2 billion investment from Japan's SoftBank Group Corp. in addition to a previous US$4 billion, valuing the shared workspace provider at US$47 billion. The company also rebranded as The We Co. and is establishing three business lines: WeWork, WeLive and WeGrow.