Baring Private Equity Asia Backs Chinese Game Developer’s Go-Private Deal

Shanghai-based Chinese online game developer Giant Interactive Group Inc. says that it has received a preliminary non-binding proposal from the company’s chairman, Yuzhu Shi, and an affiliate of Baring Private Equity Asia to take the company private.

The two investors propose to buy all of the New York Stock Exchange-listed Giant Interactive’ outstanding shares at a price of US$11.75 per share in cash, valuing the company at around US$2.8 billion.

The offer represents a 16% premium to the company’s closing price before the announcement.

The investor group and its affiliates currently own a total of 47.2% of the company’s shares.

Giant Interactive has formed a special committee to consider the proposal.