LAHORE – 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.
It comes as Uber prepares for its initial public offering — expected next month — which could, according to some estimates, see the rideshare giant’s value increase to $100 billion.
Careem declined to comment while Uber did not immediately respond to a request from Reuters to comment. Dubai-based Careem boasts more than a million drivers and 30 million users across 90 cities.
The news circulated on social media within no time and people are reacting to the matter in their posts:
https://twitter.com/AzamJamil53/status/1109835343463886848?fbclid=IwAR1C5ru5aN4LGqhDUBtA6Z37USvEFtqJCmCSZlSjHP2VyICvlQ7f-VE65wM
https://twitter.com/AunAnsari/status/1110031446175997952
https://twitter.com/SaadKassar/status/1109855857976709123
https://twitter.com/BlueIceDesert/status/1109835964078157825
https://twitter.com/SaadiaBukhari/status/1110050056571441152
https://twitter.com/SyedaMehnoor/status/1110037447889637377
https://twitter.com/MAhmadZ/status/1109985784105484289
https://twitter.com/salaarsulaman/status/1109952642380382210
What is your say on this? Let us know in the comments box below.
