China’s NSSF invests in US-listed mobile games developer

According to a regulatory filing, CMGE plans to sell 1.13 million American Depositary Shares (ADSs) at $14.50 apiece via a private placement, raising a total of $16.4 million. The investment represents approximately 4.1% of the company's enlarged share capital.

The NSSF will acquire 1.04 million shares, while ICBCCS Global China Opportunity Equity Fund and ICBC Credit Suisse Asset Management International (ICBCCS International) will acquire 88,000 and 10,350 shares, respectively.

ICBCCS International is acting as investment manager for this deal, which is expected to take place within two weeks.

Upon completion, Vodone, the Hong Kong-listed parent company of CMGE, will see its stake in the company diluted from 50.54% to 48.49%. The NCSS Fund will hold 3.71% , with ICBCCS Global China Fund on 0.32% and ICBCCS International on 0.04%.

The proceeds will be used to acquire game licenses and intellectual property, as well as for product development, R&D, expanding sale and distribution channels and general working capital.

"We believe that the investment by these established and reputable investors expresses confi dence in the long-term growth and stability of our company. This investment will also help broaden the company's strategic shareholder base," said Ken Jian Xiao, CMGE's CEO.

ICBCCS Global China Opportunity Equity Fund is a open-ended equity fund with a focus on securities issued by overseas Chinese enterprises as well as international companies.

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