Tuesday, October 15, 2019  | 15 Safar, 1441 | BETA
Samaa TV
Facebook Twitter Youtube
HOME > Global

Uber to purchase Careem for $3.1 billion: report

March 25, 2019
 
Uber to purchase Careem for $3.1 billion: report

The deal could be announced as early as Tuesday

Photo: AFP

Uber is going to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival Careem this week, according to Bloomberg.

The US ride-hailing giant will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem, people privy to the matter told Bloomberg. The notes will be convertible into Uber shares at a price equal to $55 per share, according to the term-sheet.

Shareholders in Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc, have been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday.

Related: Careem and Uber are still banned from entering the Karachi airport

Uber’s acquisition of Careem would come ahead of its initial public offering, which could be one of the New York Stock Exchange’s biggest-ever listings. Uber is expected to publicly file for an IPO in April, kicking off a listing that could value the company at as much as $120 billion, people familiar with the plans have said previously.

Careem was valued at about $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East. The company has over a million drivers and operates in more than 90 cities in 15 countries.

For Uber, a deal would signal its commitment to the Middle East, where one of its biggest investors — a Saudi Arabian sovereign wealth fund — is based. The acquisition would also be a departure in strategy for Uber, which has used such deals to offload costly overseas operations in exchange for stakes in competitors in the past.

Follow SAMAA English on FacebookTwitter, and Instagram.

 
 
HOME  
 
RELATED STORIES
 

One Comment

  1. Avatar
    Hassan Sheikh   March 25, 2019 4:33 pm/ Reply

    Yes Careem sucked just get lost from Pakistan

Tell us what you think:

Your email address will not be published.

 

 
 
 
 
 
 
MOST READ