Uber Technologies Inc., a U.S. ride-hailing giant, agreed Sunday on an investment by Japanese technology conglomerate SoftBank, which may make Uber to go public, local media reported.
The deal, allowing the Japanese consortium and its investors to buy at least 14 percent of Uber through a mix of newly created and existing stocks, is likely to lead to an investment of 10 billion U.S. dollars.
"We've entered into an agreement with a consortium led by SoftBank and Dragoneer (Investment Group) on a potential investment," an Uber spokesman said.
"Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance," he said.
Under the agreement, SoftBank will buy 1 billion dollars in new stocks valued at Uber's current valuation of 68.5 billion dollars, but the Softbank consortium will build the majority of its stake in the ride-service company by purchasing Uber's current shares from investors to reach the 14 percent mark.
The transaction will be conducted through a tender-offer process and may take at least one month to be completed.
Uber's Chief Executive Officer (CEO) Dara Khosrowshahi said Thursday that the the San Francisco-based ride-hailing company will go public in 2019.
Sunday's agreement also settled a legal battle between former Uber CEO Travis Kalanick and venture capital firm Benchmark, an early investor in Uber.
Kalanick stepped down in June after months of controversy within Uber. If the deal is completed, Benchmark will drop a lawsuit against Kalanick, who will in return allow Uber's board directors to vote on his selected board appointees in the future.
Uber, a leading firm in global ride-hailing services, is the most valuable venture-backed company in the world, with a value estimated at 68 billion dollars.
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