China's Meituan said to acquire Mobike for US$3 bil

(Apr 4): Meituan Dianping, the Chinese food review and delivery giant, is close to acquiring Mobike in a deal that will value the three-year-old bike-sharing startup at about US$3 billion ($3.9 billion), according to people familiar with the matter.

Meituan plans to buy full control of Mobike and allow Mobike’s current management and chief executive officer to keep operating the business as an independent entity, said the people, asking not to be identified because the matter is private. The deal will value Mobike’s equity at about US$2.7 billion and Meituan will assume roughly US$700 million in debt. Sixty-five per cent of the purchase will be in cash, mostly to Mobike management, and 35% will be in stock, so Mobike investors will become Meituan shareholders, one of the people said. Meituan and Mobike didn’t immediately provide comment.

Meituan, formed by a merger with Dianping, has grown into a super-app offering everything from group-buying deals and ride hailing to travel packages and payments. With a few taps to navigate its smartphone apps, Chinese customers can order up hot meals, groceries, massages, haircuts and manicures at home or in the office. It is backed by internet giant Tencent Holdings, as is Mobike.

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