Uber Purchasing Careem & $3.1 Billion Deal Will be Finalized This Week

According to the people having information regarding the matter, Uber Technologies Inc. is declaring $3.1 billion cash and share agreement in order to buy Careem as soon as the present week. The Careem networks are  based in Dubai. There’s a news about the US ride-hailing giant paying $1.7 billion in convertible notes and $1.4 million in a form of cash. The news was supposed to be private, and was asked not to be identified. According to the term-sheet viewed by Bloomberg, the notes will be converted and transferred to Uber shares at an amount equal to $55 each share.

The people said that the shareholders in Careeem have been asked to accept the terms of the transaction as soon as Monday evening so that the agreement can be declared on Tuesday. The shareholders in Careem include the Japanese e-commerce company called Rakuten Inc., and also the investment firm owned by Saudi Prince Alwaleed bin Talal.

The spokesman of Uber, Matt Kallman, refused to comment on the issue while that of a Careem wasn’t in a state to say anything immediately. Uber’s intended acquisition of Careem comes before its impending preliminary public offering. The offering could be biggest-ever listings of New York Stock Exchange.

It is expected that Uber publicly files for an IPO in the month of April which would beat up the listing that could make the company worth nearly $120 billion. These news have been brought forward by the people aware of the plans. The deal will show its commitment with the Middle East as Uber perceives it. In a funding round held in late 2016, Careem was valued at $1 billion. This made it one of the most significant technology startups in the Middle East currently. Over the past few years, Careem has expanded fast having millions of drivers now.

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