Tongcheng Travel offers HKD 1.39 per share for Dida Travel

Tongcheng Travel launched a HKD 1.3875-per-share cash offer for Dida Travel on Monday, securing irrevocable backing from holders of 53.7% of the ride-hailing firm's shares while Dida plans a separate HKD 1.1745 special dividend.

"The offer is voluntary and conditional, subject to regulatory approvals and commercial conditions," the companies said in a joint exchange filing. eLong Inc., Tongcheng Travel's wholly-owned subsidiary, is the offeror.

Dida shares surged as much as 96.9% to HKD 2.50 before settling at HKD 2.33, up 83.5%, with turnover of 17.6 million shares worth HKD 41 million. Tongcheng Travel fell 6.5% to HKD 11.72, with short selling accounting for 14.7% of its turnover. The offer price of HKD 1.3875 represents a 9.25% premium over Dida's closing price of HKD 1.27 on June 26.

The deal creates a closed-loop mobility-plus-travel ecosystem, connecting Dida's ride-sharing and smart taxi user base with Tongcheng's flight, train, hotel and scenic-ticket booking platform. Tongcheng plans to maintain Dida's Hong Kong listing status, preserving its brand independence and financing channels while achieving integration at lower cost.

The special dividend of HKD 1.1745 per share, if declared, would provide Dida shareholders with additional returns beyond the offer premium. Combined, the offer price and potential dividend total HKD 2.562 per share, though the gap between the offer price and Dida's current trading level of HKD 2.33 suggests the market is pricing in both the dividend and the possibility of a higher competing bid.

Five major Dida shareholders have signed irrevocable undertakings to accept the offer, providing a clear path to completion. The companies did not disclose the specific cash price for the total deal or the full list of preconditions, stating only that the offer remains subject to regulatory requirements and commercial conditions.

The acquisition marks a significant consolidation in Hong Kong's mobility and travel sector. Tongcheng Travel, a leading online travel platform in China, gains access to Dida's massive user base in the ride-sharing market, while Dida shareholders receive a clear exit at a premium with an additional special dividend. For Tongcheng, the deal extends its reach beyond booking services into the shared mobility space, completing a full trip cycle from departure to destination.

This article is for informational purposes only and does not constitute investment advice.