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.
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.