Shanda (SNDA) acquires Sina (SINA) stake - details from SEC filing

by: Ezra Marbach

Chinese online game operator and developer, Shanda Interactive (ticker: SNDA) disclosed that it acquired approximately 19.5% of the outstanding shares of Chinese online media company (ticker: SINA) through open market purchases. Analysis from the China Stock Blog forthcoming. More details from SEC filing here:

Details of transaction (courtesy of SEC filing):

  • Shares acquired: 9,821,765
  • Price paid: $230,430,727
  • Financing: Working capital and proceeds remaining from the issuance of $275,000,000 principal amount of convertible bonds on October 20, 2004 and from Shanda IPO on the Nasdaq National Market in May of 2004

Purpose of transaction (courtesy of SEC filing):

  • The securities were acquired for strategic investment purposes with the intention of acquiring a substantial ownership position in the issuer's shares
  • Shanda may consider increasing its stake in the issuer through open market purchases, private transactions, or tender or exchange offers; seeking to acquire or influence control of the Issuer, the means of which may include board representation; or seeking a merger, consolidation or other business combinations