Shanda Games To Go Private In US$1.9 Bln Deal

(RTTNews) - Shanda Games Ltd. (GAME) said Friday that it has agreed to be taken private in a deal that values the Chinese online game developer at about US$1.9 billion.

Under the deal reached with Capitalhold Ltd. and its subsidiary Capitalcorp Ltd., Capitalhold will buy Shanda Games for US$3.55 per ordinary share and US$7.10 per American depositary share in cash, representing a premium of 46.5% over the company's 30- trading day volume-weighted average price as quoted by Nasdaq Global Select Market on January 24, 2014, the last trading date immediately prior to the company's announcement on January 27, 2014 that it had received a "going private" offer.

The per ADS consideration also represents a 9.4% premium over the US$6.49 closing price of Shanda' American depositary shares on Thursday.

Following the close of the deal, Capitalhold will be beneficially owned by a consortium led by Ningxia Yilida Capital Investment Limited Partnership, an affiliate of Shanda's acting CEO Yingfeng Zhang.

The consortium of buyers currently owns about 75.7% of the company, with about 90.7% of its voting power.

The deal is currently expected to close in the second half of 2015.

In January 2014, a consortium consisting of the company's then-controlling shareholder Shanda Interactive Entertainment Ltd. had proposed to buy the company for US$3.45 per ordinary share, or US$6.90 per American depositary share. The latest deal price announced Friday represents a 2.9% increase from that January 2014 offer price.