Tamasek and Trustbridge Eye Majority Stake in WeWork China at $1 Billion Valuation

WeWork office building (Source: WeWork)

According to Reuters, Singapore’s Temasek Holdings and Shanghai’s Trustbridge Partners are considering increasing their stake in WeWork China to take majority ownership of the company.

The plan was submitted to WeWork’s main shareholder, SoftBank, at the end of 2019, with WeWork China valued at $1 billion, which is 80% less than its $5 billion valuation in July 2018. According to people familiar with the matter, the tripartite discussions are still at an early stage and it is uncertain whether an agreement will be reached.

SEE ALSO: WeWork China Completes Series B Financing of $500 Million, Investors Include SoftBank and Temasek

From the perspective of shareholding, WeWork currently owns 59% of WeWork China, while the remaining shares are held by other investors including SoftBank, Tamasek Holdings and Trustbridge Partners. If Temasek and Trustbridge’s investment plan were approved by WeWork shareholders, WeWork China’s valuation will decline. However the move could help rid WeWork and SoftBank of certain financial burdens.

The China division has been a questionable asset to the WeWork business. WeWork China display is low occupancy rates and is faced with fierce competition from local businesses. WeWork China’s revenue in 2018 was merely $99.5 million.