Shanda Games' Board Reconstitutes Special Committee Of Independent Directors

(RTTNews) - Shanda Games Ltd. (GAME), an online game developer, operator and publisher in China, has reconstituted the special committee of independent directors formed by the board to assess the preliminary non-binding proposal dated January 27, 2014 received by the board from Shanda Interactive Entertainment Ltd., the controlling shareholder of the company, in consortium with certain other investors to acquire the company in a "going private" transaction.

The Special Committee previously had been comprised of Andy Lin, Heng Wing Chan and Yong Gui. A change in the composition of the Consortium has resulted in the admission of Orient Finance Holdings (Hong Kong) Ltd. as a new member of the Consortium.

Lin has informed the company that he is the chief executive of China Universal Asset Management Co., Ltd. China Universal Asset Management Co., Ltd. and Orient Finance are under common control of Orient Securities Company Limited. Given Lin's affiliation with Orient Finance, he has resigned from the Special Committee, and the board has reconstituted the Special Committee to comprise 2 independent directors, Chan and Gui, who are not affiliated with any member of the Consortium, to consider and evaluate the proposal.

The Special Committee would continue to be advised by Bank of America Merrill Lynch as its financial advisor and Sullivan & Cromwell LLP as its U.S. legal counsel. The firm cautions its shareholders and others considering trading its securities that neither the board nor the Special Committee has made any decision regarding the company's response to the Proposal.