Bike rental and ride hailing startup Hello TransTech, previously known as Hello Bike, is reportedly in negotiation to acquire ofo, said a person close to the matter on Oct 19.
The on-going acquisition negotiation is reportedly 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.
Due diligence analysis of Hello TransTech and ofo’s operational data are still being calculating for the final decision. Revenues, online bike orders, and daily bike use frequencies of the two companies are under comparison, said Blue Whale TMT.