SAN DIEGO and SHANGHAI, Nov. 26, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the potential acquisition of Giant Interactive Group Inc. (NYSE: GA) by the company's chairman, Yuzhu Shi (and certain of his affiliated entities) and an affiliate of Baring Private Equity Asia (collectively, the "Consortium"). According to the non-binding proposal letter, the Consortium proposes to acquire all of the company's outstanding ordinary shares, including ordinary shares represented by the company's American depositary shares or "ADSs" at $11.75 in cash per ordinary share or ADS.
Is the Proposed Merger Best for Giant and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on the board of directors' consideration of the Consortium's offer, such as whether it is undertaking a fair process to evaluate the proposal and negotiate the terms to obtain maximum value to adequately compensate Giant shareholders in the event of its acquisition by the Consortium. Notably, the Consortium collectively owns and has voting power over 49.5% of all outstanding ordinary shares.Giant released its third quarter 2013 earnings on November 6, 2013, revealing growth in its net revenue and gross profits over its prior year results for the same quarter. Specifically,
- Net revenue was up 8.6%,
- Gross profit was up 9.5%,
- Net income attributable to the company's shareholders was up 14.1%,
- Active paying accounts for online games was up 4.2%, and
- Average revenue per user for online games was up 2.9%.
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