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ISOTeam's SG Bike to pay S$750,000 performance bond for Mobike licence

ISOTEAM'S 51 per cent-owned subsidiary, SG Bike, will furnish a performance bond of S$750,000 as a condition to getting in-principle approval from the Land Transport Authority of Singapore (LTA) for the takeover of Mobike's bicycle sharing licence.

The bond works out to S$30 per bike for Mobike's 25,000-strong fleet.

LTA's approval of the bicycle licence transfer from the Chinese startup to SG Bike was announced on Sept 13. The acquisition, at a cost of S$2.54 million to SG Bike, will make it the largest bike-sharing operator in Singapore. As of June, SG Bike had a 3,000-strong fleet.

Among other conditions for the licence transfer, both SG Bike and Mobike must demonstrate that SG Bike's mobile app can be used to unlock Mobike's bicycles. 

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SG Bike must also surrender its own bike-sharing licence held since Oct 29, 2018, and that is valid till Oct 31, 2020.

Shares of ISOTeam, which provides building maintenance and estate upgrading services, traded flat at S$0.23 as at 1.07pm.