SHANGHAI, Oct. 17, 2011 /PRNewswire-Asia/ -- Shanda Interactive Entertainment Limited, incorporated in the Cayman Islands (" Shanda" or the " Company") (Nasdaq: SNDA), a leading interactive entertainment media company in China, today announced that its Board of Directors has received a preliminary non-binding proposal letter from Mr. Tianqiao Chen, Chairman of the Board, Chief Executive Officer and President of Shanda, to acquire all of the outstanding ordinary shares of the Company not currently owned, legally or beneficially, by Mr. Tianqiao Chen, his wife Ms. Qianqian Luo, who is also a non-executive director of Shanda and his brother Mr. Danian Chen, who is also the Chief Operating Officer and a director of Shanda (together, the " Buyer Group"), for US$41.35 per American Depositary Share (" ADS") or $20.675 per ordinary share in cash. As of September 30, 2011, the Buyer Group controlled approximately 68.4% of the outstanding shares of the Company (excluding outstanding options of the Company). According to the proposal letter, which is dated as of October 15, 2011, the Buyer Group will form a transaction vehicle for the purpose of pursuing the proposed transaction, which is intended to be financed with debt. The proposal letter states that the Buyer Group has held preliminary discussions with J.P. Morgan about financing the proposed transaction and has received a "Highly Confident" letter from J.P. Morgan. The Buyer Group expects that commitment for the required debt financing, subject to terms and conditions set forth therein, will be in place by the time the definitive documentation for the proposed transaction is signed. The proposal letter also states that J.P. Morgan has been engaged by the Buyer Group as financial advisor and Shearman & Sterling LLP as legal counsel in connection with the proposed transaction. The Company's Board of Directors has formed a special committee of independent directors (the " Special Committee") consisting of Jingsheng Huang, Chengyu Xiong and Kai Zhao to consider the proposed transaction. The Special Committee intends to retain advisors, including an independent financial advisor and legal counsel, to assist it in its work. No decisions have been made by the Special Committee with respect to the Company's response to the proposed transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. About Shanda Interactive Entertainment Limited Shanda Interactive Entertainment Limited (Nasdaq: SNDA) (" Shanda") is a leading interactive entertainment media company in China, offering a broad array of online entertainment content on an integrated service platform to a large and diverse user base. Shanda offers its high quality entertainment content through its subsidiaries and affiliates, including Shanda Games, Cloudary, Ku6 Media, and various other online community and business units. The broad variety of content ranges from massively multi-player online role-playing games (MMORPGs) and advanced casual games, to social network games, e-sports, literature, film, television, music, and video etc. By providing a centralized platform through which Shanda can deliver its own content as well as third-party content, Shanda allows its users to interact with thousands of other users while enjoying some of the best entertainment content available in China today. Shanda: "Interaction enriches your life". For more information about Shanda, please visit http://www.snda.com. Contact Shanda Interactive Entertainment Limited Dahlia Wei, IR Associate Director Elyse Liao, IR Senior Manager Phone: +86-21-6058-8688 ( Shanghai) Email: IR@snda.com Christensen Investor Relations China: Christian Arnell Phone: +86-10-5826-4939 Email: firstname.lastname@example.orgUnited States: Linda Bergkamp Phone: +1-480-614-3004 Email: lbergkamp@ChristensenIR.com SOURCE Shanda Interactive Entertainment Limited
Shanda Interactive Entertainment (Nasdaq:SNDA) is trading at unusually high volume Tuesday with 748,774 shares changing hands. It is currently at 4.3 times its average daily volume and trading up 95 cents (+2.4%).
Shares of Shanda Interactive Entertainment (Nasdaq:SNDA) were gapping up Monday morning with an open price 13.5% higher than Friday's closing price. The stock closed at $33.48 yesterday and opened today's trading at $38.01.