E-Commerce China Dangdang Agrees For $556 Mln Going Private Transaction

(RTTNews) - E-Commerce China Dangdang Inc. (DANG), a business-to-consumer e-commerce company in China, announced Tuesday that it has agreed to be acquired by parent Dangdang Holding Company Limited for cash consideration of $1.34 per common share or $6.70 per American depositary share.

The transaction values the Company at approximately $556 million on a fully diluted basis.

It was on May 28 that the company entered into a definitive Agreement and Plan of Merger with Dangdang Holding and its unit Dangdang Merger Company Limited.

Th price represents a premium of 2.9% over the Company's closing price of $6.51 per ADS on July 8, 2015, the last trading day prior to its July 9 announcement that it had received a "going-private" proposal.

Immediately following the consummation of the merger, Parent Dangdang Holding will be beneficially owned by Peggy Yu Yu, chairwoman of the board of directors of the Company, Guoqing Li, director and chief executive officer of the Company,, and certain other members of the management.

The Company's board of directors approved the Merger Agreement and the merger, and resolved to recommend that the Company's shareholders vote to authorize and approve the Merger Agreement and the merger.

The merger, which is currently expected to close during the second half of 2016, is subject to various closing conditions.