US office-sharing firm WeWork on Thursday said it will sell control of its China division to one of its investors – private equity firm Trustbridge Partners – as it steps back from a competitive market where it has suffered low-occupancy rates, reported Reuters.
The deal effectively offloads the China unit away from the parent, which has faced fundraising issues since a failed attempt to go public in 2019.
WeWork said it will maintain a minority stake and “participating interest.” Concurrent with the deal, the division has received $200 million in funding from existing investors.
Michael Jiang of Trustbridge Partners will serve as WeWork China’s acting chief executive officer.