Primavera supports $1.9b Shanda Games take-private

According to a regulatory filing, the consortium owns approximately 76.2% of the company's American Depository Shares and wants to buy the remainder for $6.90 apiece. This represents a 21.3% premium to the volume-weighted average price on the company's previous close.

The stock closed at a 12-month high of $6.50 on Monday following the announcement of the offer. It was previously trading at $6.34, with a price-to-earnings ratio of 8.51.

The proposed transaction is intended to be financed with a combination of equity capital and third-party debt.

Shanda Games spun out from parent Shanda Interactive in 2009 via an IPO that raised more than $1.04 billion. Its portfolio includes massively multiplayer online (MMO) and mobile games. Net revenues for the third quarter of 2013 were RMB1.12 billion ($182.9 million), up 3.3% year-on-year.

Rival game developer Giant Interactive Group also received a take-private offer from Baring Private Equity Asia and company management in November last year. It valued Giant at about $2.8 billion.

Eleven private equity-backed take-private deals for US-listed Chinese companies have been completed since August 2011 and around 15 more are in process.

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• Topics
• Greater China
• Buyouts
• Technology
• Primavera
• buyout
• China
• TMT