Advertisement
News
Advertisement

Online game company Shanda to go private

Tue, 11/22/2011 - 5:05am
The Associated Press

Shanda Interactive Entertainment Ltd. has agreed to be taken private in a deal that values the Chinese online gaming company at $2.3 billion.

Shanda received the buyout proposal from a group led by its president, chairman and CEO, Tianqiao Chen, in October. The group already owns about 69.7 percent of Shanda, excluding outstanding options.

It will pay $41.35 per American Depositary share, or $20.675 per ordinary share, for the stock it does not already own. Based on that price, the remaining stock is worth about $457 million.

The group also includes Chen's wife, Qian Qian Chrissy Luo, who serves as a director of Shanda, and his brother, Danian Chen, the chief operating officer and a director of Shanda.

The investor group said it plans to use a $180 million loan from JPMorgan Chase, along with cash, to pay for the transaction.

The deal is expected to close in the first quarter of 2012. The company's U.S.-traded shares closed at $39.39 on Monday.

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