Seeking Alpha

Shanda Games receives $6.90/share going-private offer

  • Shanda Games (GAME +10.8%) has received a non-binding going-private proposal letter from parent Shanda Interactive and an affiliate of Chinese investment firm Primavera Capital. The offer, meant to be financed through a combo of equity and debt, values Shanda Games at $1.9B, or $6.90/share. (PR)
  • Shanda's board is evaluating the offer; the would-be acquirers already own 76.2% of the company.
  • Though up sharply, shares still trade 9% below the offer price, which suggests a fair amount of investor skepticism exists. Peer Giant Interactive (GA +1.1%) received a going private offer in November. Giant's shares still trade 7% below their offer price.
Comments (1)
  • verger1
    , contributor
    Comment (1) | Send Message
     
    I hate Shanda games, what a terrible Chinese scam company, sell all your shares!
    17 Feb, 09:31 PM Reply Like
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