Shanda offered share buyout by CEO's group
29% premium offered by CEO Tianqiao Chen as shares jump 15%
Chinese online gaming company Shanda has received a buyout offer from its CEO, president and chairman Tianqiao Chen which offers a 29 per cent premium on the company share price as of close on Friday.
The group, which includes board member and wife of Chen Qianqian Luo and his brother Dian Chen, has offered $41.35 per American Depositary share, or $20.675 per ordinary share in cash. The offer is for all outstanding shares in the company, of which around 68.4 per cent is already controlled by the group.
The company's stock closed at $33.48 on Friday evening. Following the announcement, the shares jumped by 15 per cent to $38.50 in pre-trading on today's market.
The group has reported a preliminary meeting with JP Morgan over the purchase, which would be funded with debt. The bank is said to have issued a "highly confident" letter to the group regarding the finance.
If successful, the deal would be worth around $457 million. Recent positive financials and plans for expansion have indicated healthy growth at the company,