The Chinese-based online gaming firm Shanda has received a buyout offer from current CEO, president and chairman Tianqiao Chen. Chen is offering a 29 cent premium over the company’s share price as of close on Friday. The offer has already sparked a bit of a spike in trading, as the company has seen a 15 percent jump in share price to $38.50 in pre-trading.
Shanda is a leading gaming firm, originally founded in Shanghai in 1999. Since then, the company has put out around 30 MMOs, with Mir II and Woool being highly successful.
The offer also includes Chen’s wife and brother in the deal, who already account for 68.4 percent ownership in the company. The new move would give the board full control over the company, who has expressed strong sentiment in the company’s continued growth.
Details have arisen regarding the group’s actions, noting preliminary meetings with JP Morgan over the purchase. The group has stated that funding would be made with debt, and that the bank is reportedly ‘highly confident’ with the issues regarding financing.
It has been estimated that the deal is worth just north of $457 million.
[Thanks GI.biz]
