Brookfield and Onex could pay up to $3.7B for WeWork rival

Companies are preparing offer for IWG, formerly known as "Regus"

TRD New York /
Jan.January 17, 2018 03:00 PM

From left: IWG’s Mark Dixon, Brookfield Asset CEO Bruce Flatt and a IWG space

Brookfield Asset Management and Onex are planning to bid about $3.7 billion for IWG, a WeWork rival based in Switzerland.

IWG, formerly known as “Regus,” confirmed in December that it had received an “indicative proposal” from the two companies, but no final decisions have been made yet, according to Bloomberg. Shares of IWG were up 8.3 percent in trading early on Wednesday. When news first broke of Brookfield and Onex’s interest, shares rose 30 percent.

IWG has almost 3,000 worldwide locations compared to 283 for WeWork, but WeWork’s value is significantly higher at $20 billion.

Brookfield and Onex, both private equity firms based in Canada, have until Jan. 20 to make a final call about whether or not to make an offer for IWG under the United Kingdom’s takeover rules.

Brookfield is also said to be preparing an increased bid for retail-focused real estate investment trust General Growth Properties, after its initial $15 billion bid was rejected. [Bloomberg]Eddie Small

Related Articles

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here

729 Seventh Avenue (Credit: Google Maps)

Lawyer argued façade was safe 3 months before fatal accident

Bill Ackman, LeBron James, and Arnold Schwarzenegger with 787 11th Avenue (Credit: Google Maps and Getty Images)

Celebrity property group caught in $11M construction dispute

Renderings of The William Vale and Denizen Bushwick (Credit: iStock)

All Year’s rating outlook turns negative as bondholders reject two amendments

RXR CEO Scott Rechler and an aerial view of the site (Credit: Getty Images, Google Maps)

RXR plans 21-story LIC office building with manufacturing incentives