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CFII - CF Finance Acquisition II News Story

$12.47 0.2  1.5%

Last Trade - 20/01/21

Sector
Financials
Size
Mid Cap
Market Cap £580.9m
Enterprise Value £580.6m
Revenue £n/a
Position in Universe 2920th / 6625

Former Fair CEO seeks to buy the SoftBank-backed car leasing service-sources

Fri 23rd October, 2020 7:13pm
By Greg Roumeliotis and Joshua Franklin
    Oct 23 (Reuters) - Scott Painter, the founder and former
chief executive of online car leasing startup Fair, is exploring
a bid to acquire the company from SoftBank Group Corp's  9984.T 
Vision Fund and other investors, people familiar with the matter
said on Friday.
    The effort comes as Fair, which leases vehicles by working
with car dealerships, is recovering from a setback in its
attempt to expand in ride-sharing. It ended a program that
provided weekly rentals for Uber Technologies Inc  UBER.N 
drivers earlier this year, citing an unexpected increase in
insurance premiums.
    Painter, who stepped down from Fair last year, is in talks
with blank-check acquisition companies, including Cantor
Fitzgerald LP's CF Finance Acquisition Corp II  CFII.O , about
making an offer for the startup, the sources said.
    The sources cautioned that a deal with a blank-check
acquisition company was not guaranteed and was one of several
options considered by Fair. They asked not to be identified
because the matter is confidential.
    SoftBank declined to comment, while Painter, Fair and Cantor
Fitzgerald did not immediately respond to requests for comment. 
    Fair allows drivers to lease cars from various auto-dealers
without signing long-term or fixed-term contracts. Founded in
2016, the Santa Monica, California-based company raised $385
million in a SoftBank-led funding round in December 2018,
valuing the startup at $1.2 billion. It is not clear what
valuation Fair would attain in any deal with Painter.
    In September 2019, Fair said it had raised $500 million in
loans from a group of creditors, including Mizuho Bank  8411.T 
and SoftBank. A month later, the company said it would lay off
40% of its staff, as it wrestled with soaring costs. 

 (Reporting by Greg Roumeliotis and Joshua Franklin in New York;
Additional reporting by Krystal Hu in New York; Editing by
Richard Chang)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))
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