Embassy Group to buy WeWork India's 27% stake; American WeWork Inc to exit India business

WeWork India's promoters Embassy Group is planning to buy American WeWork Inc's entire 27% stake in WeWork India for about Rs 700 crore, reported Mint. At present, Embassy Group holds 68% stake in WeWork India.

Meanwhile, Enam Holdings promoters Akash Bhansali and his family along with their investor partners will buy 40% stake in co-working firm WeWork India. As per Mint, the stake will be bought for Rs 1,200 crore in a secondary share sale. The Bhansali family is leading the consortium to acquire the stake in WeWork India. After the transaction, Embassy Group will hold 55-60% stake in WeWork India.

WeWork India sale

The Indian affiliate will continue to use the WeWork brand name for its business and an annual 2% franchise fee will paid to WeWork Inc.

Meanwhile, Mint quoted a person with knowledge of the matter and said that the Bhansali family is particularly enthused by the "phenomenal growth potential" for the WeWork model of workspace business in India.

Both Embassy and Enam have applied for an approval from the Competition Commission of India (CCI) for the proposed deal. The transaction is expected to be closed within the next 4-6 weeks.

WeWork India is planning to add 18 more buildings, across 1.5 million sq ft, this year while adding more managed offices.

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