SoftBank is not going to move forward with a planned $3 billion purchase of WeWork stock, citing closing conditions that have not been met as the reason.

“Given our fiduciary duty to our shareholders, it would be irresponsible of SoftBank to ignore the fact that the conditions were not satisfied and to nevertheless consummate the tender offer,” said Rob Townsend, SVP and Chief Legal Officer of SoftBank, in prepared remarks.

The unfulfilled closing conditions include, according to SoftBank:

• The failure to obtain the necessary antitrust approvals by April 1, 2020;
• The failure to sign and close the roll up of the China joint venture by April 1, 2020;
• The failure to close the roll up of the Asia joint venture by April 1, 2020;
• The existence of multiple, new, and significant pending criminal and civil investigations that have begun since the agreement was signed in October 2019, in which authorities have requested information regarding, among other things, WeWork’s financing activities, communications with investors, business dealings with Adam Neumann, operations, and financial condition; and
• The existence of multiple new actions by governments around the world related to COVID-19, imposing restrictions against WeWork and its operations.

The purchase was part of SoftBank’s multibillion-dollar rescue package for the office-sharing conglomerate last year following its failed IPO. It was expected to provide a hefty payout to early backers Benchmark Capital and Adam Neumann. The Financial Times reports that Neumann and other investors are expected to sue over the collapse of the deal.

According to SoftBank, the termination of the tender offer will have no impact on WeWork’s operations, customers, five-year business and strategic plan, or the vast majority of WeWork’s current employees. “WeWork has made tremendous operational progress over the past six months and continues to execute its strategy to deliver its core space-as-a-service offering, increase its membership offerings and expand its footprint and transform into an end-to-end business solutions platform,” it said in a statement.

SoftBank and the SoftBank Vision Fund have committed more than $14.25 billion to WeWork to date, including $5.45 billion since October 2019.

In October 2019, SoftBank accelerated its investment of $1.5 billion in equity capital. As of the end of 2019, WeWork had $4.4 billion in pro forma cash and cash commitments, according to SoftBank.