WE - WeWork stock more than doubles in value after hours on Cole Capital offer

2023-11-03 17:56:53 ET

Class A shares of WeWork ( NYSE: WE ) on Friday skyrocketed more than 110% in extended trading, after the co-working space provider received an offer from Cole Capital Funds to acquire 51% of all minority ownership shares of the company for $9/share.

The offer comes just days after the Wall Street Journal reported that WeWork ( WE ) was planning to file for bankruptcy as early as next week. The SoftBank-backed company has been struggling with a huge debt pile and hefty losses. It has been missing on interest payments and has been renegotiating almost all of its leases at its locations.

A WeWork ( WE ) bankruptcy would mark a stunning fall from fortune for the flexible-office space provider, which had once been privately valued at as much as $47B.

Cole Capital's $9/share offer represents a whopping 710.8% premium to WeWork ( WE ) stock's closing price of $1.11 on November 2.

"We believe that it is in the best interest of WeWork ( WE ) to support our acquisition of 51% of all the outstanding shares owned by minority shareholders at a price of $9.00 per share and provide Cole with proper representation on the company board," the investment firm said in a letter to WE's board.

"In addition, we have evaluated WeWork’s ( WE ) current locations and have evaluated several new locations which we believe will add to an expanded WeWork ( WE ) community. Our vision for the company involves a significant expansion of the offerings available to the growing WeWork ( WE ) community, including additional properties which are under consideration in markets across the United States," Cole Capital added.

Headquartered in Phoenix, Ariz., Cole Capital focuses on investments in retail, multi-family and industrial residences, and office spaces. According to its website, companies in its portfolio include Verizon ( VZ ), Oracle ( ORCL ) and Amazon ( AMZN ).

More on WeWork

• WeWork: When Do We Crash?
• WeWork Stock: Watch The Chaos From The Side
• WeWork Inc. (WE) Q2 2023 Earnings Call Transcript
• WeWork backers said to vie for control of co-working firm in restructuring
• Seeking Alpha's Quant Rating on WeWork

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