Primavera, Carlye Withdrew From Go-Private Deal Of Shanda Games

Three private equity firms, Primavera Capital, The Carlyle Group and FountainVest Partners have withdrawn from the consortium backing a US$1.9 billion go-private deal of NASDAQ-listed Chinese game developer Shanda Games Ltd., according to Shanda’s official announcement.

Chinese online game developer Perfect World also withdrew from the consortium.

An affiliate of Orient Securities, an affiliate of Haitong Securities, and Chinese wool producer Ningxia Zhongyincashmere International Group have joined the consortium as new members.

The announcement did not specify why the three funds are backing out. Media reports say that the investor group has canceled plans to borrow as much as US$850 million through a syndicated loan to fund the deal.

Shares of Shanda Games closed at $6.16 yesterday, a 10% discount to the proposed price of US$6.90 per share.

This January, Shanghai-based Shanda says that it received a preliminary non-binding proposal from its controlling shareholder Shanda Interactive Entertainment Ltd.and an affiliate of Primavera Capital, founded by former Goldman Sachs executive Fred Hu, to take the company private.

FountainVest joined the Shanda consortium in April, Carlyle in May.

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