Hello TransTech reportedly in negotiations to acquire ofo

Bike rental and ride hailing startup Hello TransTech, previously known as Hello Bike,  is reportedly in negotiation to acquire ofo, a person close to the matter said to leading local finance outlet Blue Whale TMT (in Chinese) this morning.

The person said the on-going acquisition negotiation is now focusing on price and share exchange rate. A suggested plan is to set the rate between the range 1:5 to 1:2.5, meaning that one share of ofo will be sold to Hello TransTech at a price equivalent to that of 0.2 to 0.4 shares.

According to Blue Whale TMT, some data the two parties are still calculating for the final decision include due diligence analysis of Hello TransTech and ofo’s operational data. Revenues, online bike orders, and daily bike use frequencies of the two companies are under comparison for acquisition price confirmation and planning.

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