Jefferies Rates Tongcheng Travel Buy with 20.3 HKD Target, Sets Dida Acquisition Price at 1.3875 HKD

According to Jefferies, Tongcheng Travel (00780) recently launched a voluntary conditional all-cash tender offer to acquire Dida Chuxing (02559) at 1.3875 HKD per share, representing a 9% premium to the announcement date closing price. The investment bank initiated a buy rating with a DCF-based price target of 20.3 HKD, implying 68.9% upside from current levels. The transaction is capped at 1.5 billion HKD in financing.

Five major shareholders of Dida Chuxing have signed irrevocable commitment letters, representing approximately 53.7% of issued shares. Post-completion, Tongcheng intends to maintain Dida's Hong Kong-listed status while retaining the brand's independent operations and core management team.