Chinese Ride-Hailer Didi Is Not Acquiring Bike-Sharer Ofo, the Firms Say
Xu Wei
/SOURCE : Yicai
Chinese Ride-Hailer Didi Is Not Acquiring Bike-Sharer Ofo, the Firms Say

(Yicai Global) Oct. 10 -- China's largest car-hailing platform Didi Chuxing and one of the two biggest bike-sharers Ofo have both denied rumors circulating online about the former taking over the latter. 

Didi said it has never intended to acquire Ofo, state-run The Paper reported yesterday the Beijing-based equivalent to Uber as saying. Didi will continue to support the independent development of Ofo as it has poured USD350 million into the firm via the C and E rounds of financing, it added. 

A separate WeChat public account gave birth to the rumors by publishing an article on the social media platform yesterday, citing a letter of investment intent allegedly obtained from a source close to the bike-sharer developed by Beijing Bikelock Technology. The document that was dated in August had proposed a deal that valued Ofo at USD2 billion.

In the letter, Didi proposed to set up a new board of directors that consisted of five members, four of which were divided between itself and other investors, while leaving one position to Ofo's founders. Didi would also have the upper hand in deciding all key positions, including the chief executive's. 

Ofo said that the firm has been targeted by malicious false information. The company will continue to promote the development of the shared bicycle industry to offer a greener and more convenient life to the public. 

Editor: Emmi Laine 

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Keywords: OFO , Didi , Bike Sharing , Car-Hailing , Buyout , DENIAL