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China, Oct 27, 2011 (ACN) - Chinese Internet firm Shanda Interactive said it received a cash buyout offer of about $2.33 billion from its chief executive and key shareholder Tianqiao Chen. The buyers have held preliminary discussions with J.P. Morgan about financing the proposed transaction and received a "highly confident" letter, the company said in a statement.
Chen, his wife and non-executive director Qianqian Luo, and his brother and Shanda's Chief Operating Officer Danian Chen together control about 68.4% of the company, excluding options, as of September 30. Chen's offer values Shanda at $41.35 per American Depositary Share, a 23.5 percent premium to Friday's close, or $20.675 per ordinary share in cash. The buyers expect the commitment for the required debt financing to be in place by the time the definitive agreement is signed, they told Shanda in a proposal letter dated October 15. The company's board has formed a special committee of independent directors to consider the proposed transaction, it said.
Topic: Press release summary
Sectors: IT & Internet
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From the Asia Corporate News Network
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