Jumia Technologies AG ( JMIA ) – ADR shares are trading higher Tuesday afternoon as the company becomes the subject of takeover interest from Axian Telecom, per a Bloomberg report.

What To Know: Axian Telecom recently raised $600 million in financing, according to sources who spoke with Bloomberg. These funds are intended to refinance existing debt and strategically position the company for a possible acquisition of Jumia ( JMIA ). Deliberations are reportedly ongoing and private, with no definitive agreement reached, per Bloomberg.

This potential merger follows Axian’s disclosure in May of an 8% stake in Jumia ( JMIA ). Such an acquisition could create a powerful synergy, combining Axian’s telecommunications infrastructure with Jumia’s established e-commerce network. Representatives for both Jumia ( JMIA ) and Axian have declined to comment to Bloomberg on the speculation.

What Else: Jumia ( JMIA ) is a leading e-commerce platform in Africa, often called the “Amazon of Africa.” It provides a marketplace for consumers to buy a wide range of products, a logistics service for delivery and a payment platform, JumiaPay.

News of a potential takeover by Axian Telecom would likely cause Jumia’s stock to rise for a key reason: acquisition premium. Typically, a company seeking to acquire another offers to buy its shares at a price higher than the current market value.

The prospect of this higher payout makes the stock more attractive, driving up its price as investors anticipate the potential acquisition.

Price Action: According to data from Benzinga Pro, JMIA shares are trading higher by 16.5% to $4.67. JMIA has a 52-week high of $15.04 and a 52-week low of $1.60.

Read Also: Jumia Opens New Warehouse in Egypt to Boost Logistics, Job Creation, and Digital Economy

How To Buy JMIA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Jumia Technologies’ case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.