Two Chinese companies formed a consortium to acquire all outstanding shares and American depository shares (ADS) of Chinese e-commerce firm Dangdang.

The conglomerate, participated by China Huaxi Group and US stock market's information provider iMeigu.com, revealed that it posted a joint offer to buy New York-listed Dangdang at $8.8 per ADS or $1.76 per share on Thursday night.

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The consortium noted that the bid is 12.6 percent higher than the previous preliminary non-binding proposal made on July 9 last year by the internal acquisition team, namely, board chairwoman Peggy Yu and CEO Guoqing Li, which stands at $7.812 per ADS in cash.

iMegu submitted a proposal on March 9 to buy all of the outstanding Class A and Cass B common shares and ADS in an all-cash transaction. The consortium has also sought the expertise of O' Melveny and Myers LLP as its international legal counsel and East & Concord Partners as PRC legal counsel.

China Dangdang Inc. is an e-commerce electronic firm based in Beijing. It has dominated the online book market following its launch in 2010. However, it has recently came under threat from Amazon China and other local giants such as Alibaba and JD.com. The company has shifted to a broader online retail selling including products like fashion and household items and other general merchandise.

Meanwhile, Jiangsu Huaxi Group Co. runs multiple businesses ranging from the fields of manufacturing and agriculture to trade, finance, and real estate. Its total assets have reached RMB48.281 billion in 2014.

TagsDangdang, Huaxi Group, iMeigu, consortium, joint proposal, Amazon China, Alibaba, Acquisition, e-commerce