
BEIJING (dpa-AFX) - Dada Nexus Ltd. (DADA), an on-demand retail and delivery platform in China, on Tuesday announced that it has entered into a merger agreement with JD Sunflower Investment Ltd. and JD Sunflower Merger Sub Ltd. The merger offer represents approximately 42 percent premium of the closing price of ADSs on January 24, 2025.
Once the merger is completed, the acquired entities will become privately owned, and its ADSs will be delisted from the Nasdaq Global Select Market. The Merger is expected to close within the third quarter of 2025.
Shares of Dada Nexus are increasing in the pre-market trading.
Under the Merger Agreement, JD Sunflower Merger Sub will combine into the Company, which will continue to exist as a wholly owned subsidiary of Parent. The parent will be fully owned by JD.com, Inc. (JD).
Parent and its affiliates, holding over 60% of the voting rights, have agreed to vote in favor of the Merger Agreement.
In exchange, holders will receive $2.00 in cash per ADS and $0.50 per ordinary share. Both will be canceled except for certain excluded shares.
JD.com International Ltd., a subsidiary of JD, will fully fund the merger through cash.
In the pre-market trading, Dada Nexus is 4.3243% higher at $1.93 on the Nasdaq.
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