Dada Group receives a premium acquisition offer from JD.com, and the stock price jumps accordingly
Dada Group announced that it has received a non-binding acquisition offer from JD.com, with a price of USD 2.0 per ADS, representing a 42% premium over last Friday's closing price. Following this news, Dada Group's stock price surged over 25% in pre-market trading. The board of Dada Group has established a special committee to evaluate the proposal and plans to hire independent advisors to assist in the review
According to Zhitong Finance APP, Dada Group (DADA.US) announced that it has received a non-binding acquisition offer from its major shareholder, Chinese e-commerce giant JD.com. JD.com proposed to purchase the ADSs of Dada Group that it does not already own at a price of $2.00 per American Depositary Share (ADS) (or $0.50 per ordinary share). This acquisition offer represents a 42% premium over Dada Group's ADS closing price of $1.41 last Friday. Boosted by this news, as of the time of writing, Dada Group's stock surged over 25% in pre-market trading on Monday.
It is reported that last September, JD Group acquired a total of 87,481,280 ordinary shares and 1,875,000 American Depositary Receipts from Global Pinnacle Corporation, a company wholly owned by Walmart Group, through its wholly-owned subsidiary. Following the completion of this transaction, JD Group acquired all shares of Dada Group held by Walmart and effectively holds approximately 63.2% of the total issued ordinary shares of Dada Group.
Dada Group stated that its board of directors has established a special committee composed of three independent directors with no conflicts of interest to evaluate JD's proposal, and added that the committee plans to hire independent financial and legal advisors to assist in the review