Dida Inc Shares Surge Over 80% on TONGCHENGTRAVEL's Takeover Offer and Special Dividend Proposal

Stock News09:40

Shares of Dida Inc (ASX: 02559) have surged more than 80%. At the time of writing, the stock is up 80.31% to HK$2.29, with a turnover of HK$9.4503 million.

Details of the Offer

The company and TONGCHENGTRAVEL (ASX: 00780) have jointly announced that TONGCHENGTRAVEL, as the offeror, has made a voluntary conditional general cash offer to acquire all the issued shares and share options of Dida Inc. The offer price is HK$1.3875 per share, representing a premium of approximately 9.3% over Dida's closing price of HK$1.27 on June 30.

Special Dividend Announcement

Dida Inc has proposed to pay a special cash dividend of HK$1.1745 per share upon fulfillment of all conditions. Shareholders who accept the share offer will remain entitled to receive the special cash dividend. All shareholders are entitled to the special dividend regardless of whether they accept the share offer.

Shareholder Support and Financing

Dida Inc stated that shareholders holding approximately 53.7% of the equity have provided irrevocable undertakings to accept the share offer in respect of all their shares. The offeror intends to fund the total consideration payable under the offer through a financing facility of up to HK$1.5 billion provided by China CITIC Bank International.

Intention for Listing Status

The offeror's purpose for making the offer is not to privatize Dida Inc. The offeror intends to maintain Dida Inc's listing status on the Stock Exchange of Hong Kong after the offer closes.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment