NEW YORK (TheStreet) -- Chinese online game developer Shanda Games (GAME) announced Monday that it had received a nonbinding takeover bid from a group led by its controlling shareholder. Shares were gaining 12% to $6.33 in early Monday trading.
Shanda Interactive Entertainment and an affiliate of Primavera Capital, which combine to own an approximately 76% stake in Shanda Games, have made an offer of $6.90 per American depositary share (ADR) to buy the company's remaining shares. Shanda Games will now review the proposal via the creation of a special committee of independent directors, which will also review "other strategic options," according to the company statement.
The Company cautions its shareholders and others considering trading its securities that the Board has just received the proposal letter and has not made any decision with respect to the Company's response to the Proposal," the statement reads. "There can be no assurances that any definitive offer will be made by the Consortium or any other person, that any definitive agreement will be executed relating to the proposed transaction, or that the proposed transaction or any other transaction will be approved or consummated."
GAME data by YCharts