Advertisement
News
Advertisement

Shanda Interactive gets proposed buyout offer

Mon, 10/17/2011 - 5:05am
The Associated Press

Chinese online gaming company Shanda Interactive Entertainment Ltd. has received a buyout proposal from a group led by its President, Chairman and CEO Tianqiao Chen. The deal is worth about $457 million.

Shanda stock jumped $5.02, or 15 percent, to $38.50 in premarket trading.

The group, which includes Chen, his wife Qianqian Luo and his brother Dian Chen, controls about 68.4 percent of Shanda's outstanding stock, excluding outstanding options. Luo is a Shanda board member and Dian Chen is its chief operating officer and a director.

Shanda currently has 69.8 million outstanding shares, according to FactSet.

The group said Monday that it is offering $41.35 per American Depositary share, or $20.675 per ordinary share in cash. It is looking to acquire all of the outstanding ordinary shares that it does not already own.

The group plans to finance the proposed deal with debt. The group said that it held preliminary talks with J.P. Morgan about financing the acquisition and received a "highly confident" letter from the firm.

Shanda's stock closed at $33.48 on Friday.

Shanda said that a special committee of independent directors will consider the offer, and it plans to hire advisers to help evaluate the proposal.

Advertisement

Share this Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading