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WeWork Global has sold a 2.52% stake in flexible workspace operator WeWork India Management for INR 244.14 crore through open-market transactions, reducing its holding in the Indian company to 12.3% from 14.82%. The sale involved 35 lakh equity shares transferred in five tranches by its affiliate 1 Ariel Way Tenant Ltd at an average price of INR 697.55 per share. Despite the reduction, WeWork Global remains the largest public shareholder. The transaction comes as WeWork India reported a consolidated net loss of INR 4.30 crore for the April-June quarter, although total income increased to INR 700.74 crore. The Indian business, majority-owned by Embassy Group, began in 2017 as a joint venture between WeWork Global and Embassy Group and remains the exclusive licensee of the WeWork brand in India.
WeWork Global divested a 2.52% stake in flexible workspace operator WeWork India Management for INR 244.14 crore through open-market transactions on Friday, reducing its holding in the Indian company to 12.3%, according to block deal data on the BSE. The transaction was carried out through WeWork Global's affiliate 1 Ariel Way Tenant Ltd.
The affiliate sold 35 lakh equity shares in five tranches, representing a 2.52% stake in WeWork India Management. The shares were sold at an average price of INR 697.55 each, taking the combined value of the transactions to INR 244.14 crore.
Following the sale, 1 Ariel Way Tenant Ltd's holding in WeWork India Management declined from 14.82% to 12.3%. Despite the reduction, WeWork Global, through its affiliate, continues to be the company's largest public shareholder.
The shares sold by WeWork Global were purchased by Motilal Oswal Asset Management Company Ltd PMS, Motilal Oswal Mutual Fund, ICICI Prudential Mutual Fund, HDFC Standard Life Insurance Company Ltd and Citigroup Global Markets Mauritius. Each buyer acquired an equal number of shares at the same price, according to the transaction details.
The stake sale was followed by a decline in WeWork India Management's share price on the BSE. The company's shares fell 1.57% to close at INR 707.80 apiece.
The transaction comes against the backdrop of WeWork India's financial performance in the first quarter of the current financial year. The company reported a consolidated net loss of INR 4.30 crore in the April-June quarter, compared with a net loss of INR 14.10 crore in the corresponding period of the previous year. The company attributed the quarterly loss to higher expenses.
Despite the loss, WeWork India's total income increased during the quarter. Revenue rose to INR 700.74 crore from INR 545.71 crore in the corresponding period of the preceding financial year.
WeWork India was established in 2017 as a joint venture between US-based WeWork Inc and Embassy Group. Following WeWork Inc's Chapter 11 bankruptcy filing in the US, the global company moved towards selling its stake in the Indian business entirely. WeWork India is majority-owned and promoted by Embassy Group and operates as the exclusive licensee of the WeWork brand in India.
The latest transaction therefore represents a further reduction in WeWork Global's holding in its Indian operations, while its affiliate continues to retain the largest public shareholding. The Indian business continues to operate under Embassy Group's majority ownership and the WeWork brand licence.
Source - PTI
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