Home Business Uber anticipated to acquire Careem this week for $3.1bn

Uber anticipated to acquire Careem this week for $3.1bn

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Weeks prior to Uber’s puffed up IPO next month; several media reports point out that Uber may make an offer this week to acquire the Dubai-headquartered ride-hailing service, Careem, for $3.1bn.

According to Bloomberg, Uber is prepared to make a bid of $1.4bn in cash and the left over in convertible notes for Careem. Those notes can then be converted into Uber shares at a price point of $55 per share.

Moreover, Bloomberg has reported that Careem’s stakeholders comprising of Saudi Arabia’s Prince Alwaleed bin Talal’s investment firm Kingdom Holdings Company and Japanese e-commerce company Rakuten Inc. have been requested to agree to the terms of the agreement by this evening so that an declaration could be made as early as tomorrow.

Uber is thought to launch its IPO in April and will list on the New York Stock Exchange. It might be valued as high as $120bn. Uber has disrupted the usual taxi industry in more than 60 countries.

Careem was valued at $1bn in 2016, thus making it the most expensive tech startup in the Middle East. Ever since its commencement in 2012, Careem has quickly extended and has an existence in more than 90 cities, employing over a million drivers.

In January, Saudi’s Kingdom Holding Company, which has a stake in Careem, would back a merger of the Dubai firm with competitor Uber, a senior official has said.

The organization took a 7 percent stake in Careem in 2017 and was also part of a $200m fundraising round in October.

“We don’t hinder nor are we party to the discussions, and if it ever happens I think we are supportive of it yes,” CEO of Kingdom Holding Talal Bin Ibrahim Al Maiman told Bloomberg at the World Economic Forum in Davos, Switzerland.

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