OYOs founder and CEO, Ritesh Agarwal is planning to buy back stakes from early investment companies of OYO that are, Lightspeed Venture Partners and Sequoia Capital to surge his stakeholdings from 10 per cent to 33 per cent, encompassing shares owned by employees and management, according to a media report.
To finance the buyback, Agarwal has been in talks with financial institutions and banks in India, Japan and Europe to raise $2 billion in secured debt by pledging his shares, the people familiar with the matter told the daily news, The Economic Times.
If Agarwal manages to buy back stakes then he along with OYOs management and employees will become the second largest stakeholder in the hospitality company after Softbank, which possesses nearly 48 per cent of stakes. As per OYOs clause, the Japanese investment company cannot increment its ownership over 49.9 per cent without getting the consent of the company's founder, Agarwal and other financial backers.
Lightspeed presently owns 13.4 per cent of stakes in OYO and has in all invested INR 158 crore, while Sequoia has ploughed in INR 165 crore and holds a 10.24 per cent stake, the media report said.