China's Giant Interactive to go private for $3 bn

Mar 17, 2014
File picture shows Chinese students playing online computer games at an internet cafe in Hangzhou during their summer holidays, on July 26, 2007

New York-listed Chinese online game developer Giant Interactive said Monday it had agreed to be taken private by its parent, backed by a consortium which will fund the $3 billion purchase.

The parent would acquire the listed unit at $12.00 per share, 2.1 percent higher than the previous proposal of $11.75 offered in November last year, the Shanghai-based company said in a statement on its website.

The latest price represented a 5.3 percent premium from Giant Interactive's closing price of $11.40 on the New York Stock Exchange on Friday.

The consortium—Giant Interactive chairman Shi Yuzhu, Baring Private Equity Asia and an affiliate of Hony Capital Fund—already owns a total 49.3 percent of the company and would purchase the rest with cash and proceeds from debt financing, the statement said.

After the deal, which is expected to close in second half of this year, the listed unit would become a privately held company and its shares will no longer be listed in New York, it said.

Giant Interactive is one of the country's leading developers with a focus on multi-player, role-playing games, according to the .

Its planned privatisation followed the $2.3 billion buyout deal of Nasdaq-listed Chinese Shanda Interactive by chairman Chen Tianqiao in 2012, according to state media reports.

Explore further: Nielsen buying Harris Interactive for about $117M

add to favorites email to friend print save as pdf

Related Stories

Shanda Games IPO gets tepid reception

Sep 25, 2009

(AP) -- Shanda Games Ltd., a Chinese video game company, raised $1 billion Friday in the largest initial public offering of the year.

WeChat: China's popular mobile messaging app

Feb 20, 2014

As Facebook snaps up smartphone messaging service WhatsApp for a monumental $19 billion in cash and shares, focus has turned to its rivals. Here are some background facts about China's popular mobile messaging applicatio ...

Recommended for you

Oregon sues Oracle over failed health care website

10 hours ago

Oregon Attorney General Ellen Rosenblum says she's filed a lawsuit against Oracle Corp. and several of its executives over the technology company's role in the state's troubled health insurance exchange.

Google buys product design firm Gecko

10 hours ago

Google on Friday confirmed that it bought Gecko Design to bolster its lab devoted to technology-advancing projects such as self-driving cars and Internet-linked Glass eyewear.

Ticketfly buying WillCall for on-premise data

Aug 21, 2014

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

User comments : 0