According to Bloomberg, Uber Technologies Inc is set to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival, Careem Networks FZ, according to people with knowledge of the matter.
The deal, expected to be announced Tuesday, will see Uber pay $1.4 billion in cash and the remaining $1.7 billion in notes convertible to Uber shares, Bloomberg reported.
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, the sources informed.
Those reports indicated the deal could be signed as early as Monday and announced by Tuesday, though spokespeople for Uber and Careem did not comment on the matter.
Uber’s acquisition of Careem would come ahead of its imminent initial public offering, which could be one of 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.
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, according to its website.
Thanks Mr. Nasir Jehangir for the big news of Carim an important contributor of transport capacity building contributor of Pakistan. Carim investment includes SoftBank, Royal Highness Saudi Arabia investment and the company which employed Pakistanis and brought employment to Karachi and other cities in Pakistan. The major issue is the dis-investment from Carim creates a monopoly situation which may entail QOS, road Safety, which is grossly over looked in Karachi on the principles being laid down by the UN Road Safety Commission which indicates the number of death, injuries on roads one of the highest cause of death in the world in Pakistan and ROW. The economic aspect of this M/A., is also leave a big room for competition which has to be cleared from the respective UNCTAD CCOP offices of Pakistan. There should be a clear disclaimer from Uber how it will retain the competition, capacity building, UN Road Safety commission of Pakistan. Uber last week launched an IPO in the Wall Street, NY where the competition of Uber in the US attracted investment in the stocks listed in the Wall Street in Ride Hailing transport in the US.
Uber competitor is very keen to enter Pakistan in App. Based Transport Taxi services which will create a very healthy competition in Pakistan and should be encouraged with tax breaks for the capacity building moves by the respective Governmental Authority, which possibly encourage fresh investment, zeal in the transportation, mobility in Pakistan
1 hi competition tha, wo bhi acquire karlia. Ab Monopoly hogi Uber ki Pakistan me