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April 21, 2014 /PRNewswire/ -- Shanda Games Limited (NASDAQ: GAME, "
Shanda Games" or the "Company"), a leading online game developer, operator, and publisher in
China, today announced that Shanda Interactive Entertainment Limited ("Shanda Interactive"), the controlling shareholder of
Shanda Games, has entered into a share purchase agreement with Perfect World Co., Ltd. (NASDAQ: PWRD, "Perfect World"), another leading online game developer and operator in
China, for Perfect World to acquire a total of 30,326,005 class A ordinary shares of
Shanda Games. Pursuant to the share purchase agreement, Perfect World will acquire these shares from a wholly-owned subsidiary of Shanda Interactive for a total consideration of
US$100 million in cash. The purchase is expected to be consummated in 30 days, subject to the satisfaction of customary closing conditions.
In addition, Perfect World has also entered into an adherence agreement to become a party to the consortium agreement dated as of
January 27, 2014 between Shanda Interactive and Primavera Capital (Cayman) Fund I L.P., an affiliate of Primavera Capital Limited, and participate as a new member of the consortium (the "Consortium") in the proposed "going private" transaction with respect to
Shanda Games. The Consortium has submitted a preliminary non-binding proposal letter dated
January 27, 2014 (the "Proposal") to the board of directors of
Shanda Games. According to the Proposal, the Consortium proposed to acquire
Shanda Games in a "going private" transaction for
US$3.45 per class A or class B ordinary share of
Shanda Games, or
US$6.90 per ADS. According to the Proposal, the proposed transaction is intended to be financed with a combination of equity capital funded by the Consortium members and third-party debt. The Proposal states that it constitutes only a preliminary indication of interest and is subject to negotiation and execution of definitive agreements relating to the proposed transaction.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this press release that are not historical facts represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve inherent risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include, but are not limited to, the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.