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Oyo’s founder to buy back up to $2 billion stake in SoftBank-backed Indian, co

FILE PHOTO: The logo of OYO, is India’s largest and fastest-growing hotel chain, is installed in a hotel, the building is shown in a back alley in New Delhi, India, on April 3, 2019. REUTERS/Adnan Abidi/File Photo

BENGALURU (Reuters) – the Indian hospitality to boot, Oyo, Founder Ritesh Agarwal increased his stake in the company for $2 billion for the repurchase of shares, a move that will make its ownership closer to its biggest investor, SoftBank Corp. (a) (9434.(T).

The fresh investment round that will take Agarwal’s stake from about 30% to 10%, a source familiar with the development said.

Japanese SoftBank, the owner of approximately 45% of the company’s business.

As part of this transaction, the existing investors Lightspeed Venture ners, Sequoia India, and the sale of parts of its holdings in OYO, to help, is the Founder and CEO of Agarwal to increase its stake, Oyo said in a statement.

Agarwal, financing of the purchase of its own shares by the institutional investors, and financial partners, the source said, adding that the tour took the company’s valuation to $10 billion.

Oyo doesn’t give information on how to Agarwal will be the fund, with the deal of his stakeholding.

Reporting by Derek Francis in Bengaluru; Editing by Subhranshu Sahu

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