Oct 04 (Japan Times) - Uber’s board of directors Tuesday approved a plan that reins in the influence of ousted chief executive Travis Kalanick and opens the door to a colossal investment by telecommunications giant SoftBank.
The proposal adopted by Uber's board also promised to put an end to infighting between Kalanick supporters and investors who suspected the co-founder was plotting a wily return to the company's leadership.
"Today, after welcoming its new directors Ursula Burns and John Thain, the board voted unanimously to move forward with the proposed investment by SoftBank and with governance changes that would strengthen its independence and ensure equality among all shareholders," Uber said in an emailed statement.
"SoftBank's interest is an incredible vote of confidence in Uber's business and long-term potential, and we look forward to finalizing the investment in the coming weeks."
If the investment goes ahead as proposed, SoftBank would directly pump between $1 billion (about ¥112 billion) and $1.25 billion into Uber at the San Francisco-based startup's current valuation of $69 billion, according to a source familiar with the matter.
As a secondary investment move, the Japanese company would put out an open offer to buy 14 percent to 17 percent of outstanding shares from large investors at a discounted price, the source said.
Major investors who are unhappy with the leading smartphone-summoned ride share startup, or who want to cash-in on early investments that have multiplied in value, could take SoftBank up on the offer.
Governance changes approved by the board hinge on the SoftBank investment taking place.
