Capitalhold Ltd. and its subsidiary Capitalcorp Ltd. have inked a deal to purchase Chinese firm Shanda Games, a major developer, operator and publisher of online games, for $1.9 billion, Reuters reported.
The deal values Shanda Games at $3.55 per ordinary share and $7.10 per American depositary share, which is equivalent to a premium of 46.5 percent over Shanda's average trading price for 30 days.
To fund the acquisition, the consortium of buyers said that they intend to use cash contributions from Ningxia Silkroad, Zhongrong Legend, Zhengjun Investment and others.
Shanda Games offers a wide variety of games, including some of the most popular multiplayer online and mobile games available in China and foreign markets, domain-b.com reported.
Some of the games operated and published by the company include GetAmped, Ragnarok Online, Magical Land, Crazy Arcade, The World of Legend, MapleStory, AION, The Age, and Dungeons & Dragons Online.
Under the terms of the deal, the Chinese firm will go private and will merge with Capitalcorp upon closing of the transaction. Shanda Games will also operate as a completely owned independent subsidiary of Capitalhold.
The acquisition, subject to certain conditions, is expected to be finalized in the second half of 2015, RTTNews said.
Aside from Capitalhold and Capitalcorp, the Chinese online game developer also received a buyout offer from Shanda Interactive Entertainment Ltd. and a Primavera affiliate in Jan. 2014. The two firms offered to buy Shanda for $1.9 billion, or $6.90 per American depositary share.
Shanda Games hired Global Law Office to be its PRC legal advisor, and appointed Davis Polk & Wardwell LLP to serve as its legal advisor in the U.S.