Primavera, Shanda Interactive Propose To Take Shanda Games Private


Shanghai-based Chinese online game developer Shanda Games Ltd. says that it has received a preliminary non-binding proposal on January 27th from its controlling shareholder Shanda Interactive Entertainment Ltd. and an affiliate of Primavera Capital to take the NASDAQ-listed company private.

The investors, who together already own around a 76.2% stake of Shanda Games, plans to acquire the company at US$6.90 per American Depositary Shares (ADS), a 21.3% premium to the company’s volume-weighted average price on January 24, or a premium of 44.4% to the volume-weighted average price during the last 30 trading days.

The privatization deal values Shanda Games at approximately US$1.9 billion.

The investors say that they will finance the deal with a combination of their own equity and third-party debt.

Shanda Games says its board is reviewing and evaluating the proposal.

In October 2011, Shanda Interactive Entertainment was taken private by its CEO and chairman, Chen Tianqiao in a US$2.3 billion deal.

Caishen.Co - Primary Data for China Secondary Investment and Stock Markets
 
Caishen.Co - Primary Data for China Secondary Investment and Stock Markets

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