China OTAs: Tongcheng makes offer to acquire Dida

Research evidence excerpt

China OTAs: Tongcheng makes offer to acquire Dida

J P M O R G A N Asia Pacific Equity Research

30 June 2026

China OTAs

Tongcheng makes offer to acquire Dida

• Tongcheng’s Dida deal is best viewed as a (small) control acquisition in Co-Head of Asia Pacific Consumer

ground mobility. Tongcheng announced on 29 Jun a voluntary conditional Research and Head of Asia Gaming/

cash offer for Dida Inc. (2559.HK; not covered), a China carpooling/ride- Leisure Research

hailing aggregation platform with c.21mn drivers. The offer price is HK DS Kim AC

$1.3875/share, with 53.7% of Dida shares already committed by key (852) 2800-8597

shareholders. This implies Tongcheng’s cash outlay is c.HK$765mn for the ds.kim@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

committed shares, or c.HK$1.42bn if fully accepted. Dida will separately pay Morgan Broking (Hong Kong) Limited

a HK$1.175/share special dividend, or c.HK$1.21bn in total, from its own Selina Li

balance sheet, but this is not Tongcheng’s acquisition cost. I.e., this is an ex- (852) 2800-8530

cash acquisition: Dida pays out most of its c.RMB1.3bn net cash, while selina.c.li@jpmorgan.com

Tongcheng buys control of the operating business. Completion remains subject J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

to standard offer conditions, with no special regulatory approval flagged. Lindsey Qian

• Financially, the deal is small and marginally EPS accretive. Dida generated (86 21) 6106 6269

RMB502mn revenue and c.RMB130m net profit in 2025, equivalent to c.2-3% lindsey.qian@jpmorgan.com

J.P. Morgan Securities (China) Company Limited

of Tongcheng’s revenue/earnings base, likely adding c.1%+ to Tongcheng’s

EPS (depending on final acceptance level). The offer price is c.9% above