Barely a day after the MSCI India Index announced it onboarded WeWork India Management, WeWork Global divested a 2.5 per cent stake in the Indian licensee of the flexible workspace operator for ₹244 crore through open-market transactions.
BSE block deal data revealed that 1 Ariel Way Tenant Ltd, the affiliate of WeWork Global, offloaded as much as 35 lakh equity shares in five tranches in WeWork India Management.
This represented a 2.52 per cent stake in WeWork India at a combined transaction value of around ₹244 crore, disposed of at an average price of ₹697.55 apiece.
Following the transaction, WeWork Global, through 1 Ariel Way Tenant Ltd, now holds just 12.3 per cent of WeWork India Management, despite being the largest public shareholder.
WeWork India kicked off in the country in 2017 as a JV between WeWork Global (then WeWork Inc) and Embassy Group. However, when WeWork Inc filed for Chapter 11 bankruptcy in the US, it looked to sell off its India stake. This led to Embassy Group stepping in as promoter and majority owner of WeWork India.
On Friday, the day of the transaction, WeWork India Management shares slipped 1.57 per cent on the BSE to close the week at ₹707.80 a share.
Last month, the India arm posted a quarterly consolidated net loss of ₹4.30 crore on account of higher expenses, shrinking from the ₹14.10 crore loss it reported a year ago.
