China Dangdang signs merger agreement

According to the agreement, Dangdang Merger Company will merge with China Dangdang, which will survive as a wholly-owned subsidiary of the parent.

The merger will entail price of approximately $556 million, representing a premium of 2.9 per cent over the company's closing price on its last trading day. It will be funded by rollover financing from shareholders, proceeds from a committed loan facility and the available cash with parent company.

The transaction is expected to close by the second half of 2016, subject to customary closing conditions. (MCJ)

Fibre2Fashion News Desk - India