Meituan’s Owner Declines to Comment on Rumored USD3.7 Billion Mobike Merger

Xu Wei

(Yicai Global) April 3 — Sankuai Online Technology Co., operator of Chinese food review and meal delivery giant Meituan-Dianping, declined to comment on media speculation that it is about to acquire Beijing Mobike Technology Co, better known as Mobike, a leading provider of shared-bike services.

Sankuai Online will not comment on rumors, the Beijing-based company told online portal NetEase Finance today. Meituan-Dianping also offers restaurant reviews, takeout ordering, ride hailing and a host of other lifestyle services.

Sankuai Online reportedly has reached an agreement to pay USD3.7 billion for Mobike. The deal is said to comprise USD1.2 billion in cash and USD1.5 million in equity, while Sankuai Online will take on USD1 billion of Mobike’s debt.

The two will announce the deal as early as this week, news site Blue Whale Finance reported today. Tencent Holdings Ltd.’s Chief Executive Pony Ma, whose tech company backs both firms, brokered the acquisition, according to finance and business magazine Caixin.

Mobike allegedly holds about CNY6 billion (USD945,000) in users’ deposited funds, a claim it denies, with CNY1 billion worth of supplier arrears, bringing its total debt to more than USD1 billion.

Excluding debt, Mobike’s actual sale price will reach USD2.7 billion, less than a previous round of fundraising that valued the business at USD3.4 billion, Blue Whale Finance said. However, the reported amount is incorrect as the deal is not yet concluded, Caixin added, citing a source close to Sankuai Online’s board.