BRIEF: Dada Nexus agrees to be privatized by JD.com
Intra-city delivery company Dada Nexus Ltd. (DADA.US) said on Tuesday it signed a definitive agreement to be privatized by majority stakeholder JD.com (JD.US; 9618.HK) at a price of $2 per American depositary share (ADS). The offer comes after Dada Nexus received a preliminary offer to be privatized by JD.com in January.
Dada said the $2 offer price represents a 42% premium to the closing price of its ADSs on Jan. 24, the last trading day before it announced the preliminary deal with JD.com. The stock has risen 35% since then, including a 3.2% increase on Tuesday, to its latest close of $1.91.
Dada said the privatization is expected to close in the third quarter of this year. Dada Nexus is one of China’s leading local delivery companies, and was formed in 2014 through the merger of JD.com’s intra-city delivery service and independent intra-city delivery company Dada. Since then, JD.com has gradually increased its stake in Dada to the current level of 63.2%.
By Doug Young
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