The future of the new Capital Bikes scheme looks uncertain after the Government changed the rules for the scheme and announced plans to privatise the programme.
Under the new rules, the scheme would have been able to sell its shares in the company under a limited set of conditions, including having a minimum value of €5,000.
Under these rules, a scheme like Capital BIKeshare would have had to be in the red if its share price fell below €5 million.
The Government said it was looking to sell off more than 3,000 shares, with another 300 to be sold in the next few months.
However, the Government has now announced plans for the company to be liquidated, with shares worth less than €5.5 million being liquidated.
Under this new plan, Capital Bike will be liquidating all of its shares and the shares that remain will be sold on the stock exchange.
The scheme will remain open for business, but it will not be able to buy shares from other companies.
The Minister for Transport, Tourism, Rail and Main Roads said the scheme will have to find a new owner.
The decision to liquidate the scheme comes after the Irish Rail Éireann board voted to retain the scheme’s majority shareholder, with the majority of the shares held by the company remaining in the hands of the Irish Government.
The move is in response to the Government’s decision to sell the scheme to a private company.
The company will retain the right to sell any of its stock on the Dublin Stock Exchange.
It was reported earlier this week that a deal had been agreed with the Government, but a source close to the negotiations said the deal had not been finalised and would not be announced until late next week.
The plans to liquidating the scheme were first reported by the Irish Times on Friday.
Earlier in the week, the Department of Transport announced that it would not approve a new scheme, but the Irish State will be able continue to provide subsidies for the use of the scheme, even if the scheme is not re-established.
The new scheme will be used to run Capital Biking stations in Dublin, Cork, Limerick and Dublin Bay.
It is understood that the new scheme is expected to run for 10 years, and that a new funding plan for the system will be released in the coming weeks.