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SHANGHAI - Dada Nexus Limited (NASDAQ: DADA), a prominent local on-demand retail and delivery platform in China with a market capitalization of $481 million and strong financial health indicators, has announced a merger with JD Sunflower Investment Limited and its subsidiary, becoming a fully owned entity of JD.com, Inc. (NASDAQ: JD). According to InvestingPro data, the company maintains a healthy current ratio of 3.27 and minimal debt levels. The merger agreement dictates that each American Depository Share of Dada Nexus will be exchanged for $2.00 in cash, and each ordinary share will fetch $0.50 in cash.
The transaction reflects a 42% premium over the closing price of Dada Nexus’s shares on January 24, 2025, the last trading day prior to the preliminary non-binding proposal from JD. The deal is set to be funded by a cash contribution from JD.com International Limited, a subsidiary of JD, which has committed to financing the merger. The offer price aligns with InvestingPro’s analysis, which suggests the stock is currently undervalued, trading at just 0.97 times book value. For more insights on undervalued opportunities, visit our Most Undervalued Stocks list.
Dada’s board of directors, advised by a committee of independent directors with financial and legal counsel, has unanimously approved the merger agreement and recommended shareholder approval. The merger is anticipated to close in the third quarter of 2025, subject to standard closing conditions and at least two-thirds shareholder approval at a general meeting.
If the merger is successful, Dada Nexus will transition to a private company, and its shares will be delisted from the Nasdaq Global Select Market. More than 60% of Dada’s voting shares, held by JD.com and affiliates, are pledged to support the merger.
Investors and shareholders are advised to read the Schedule 13E-3 Transaction Statement, including a proxy statement, for detailed information about the merger. These documents will be available on the SEC’s website.
Dada Nexus operates two synergistic platforms: JD NOW, a significant local on-demand retail platform, and Dada NOW, an extensive local on-demand delivery service. With annual revenues of $1.32 billion and a gross profit margin of 25.27%, the company has established a substantial market presence. The merger is expected to enhance the delivery experience for JD NOW through Dada NOW’s infrastructure. For comprehensive analysis and additional insights, access the full Pro Research Report available on InvestingPro, which covers over 1,400 US-listed companies.
This announcement is based on a press release statement from Dada Nexus Limited.
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