Shanda Games Limited(ADR) (NASDAQ:GAME) Mulls New Offer


Dallas, Texas 01/28/2014 (FINANCIALSTRENDS) – Shanda Games Limited(ADR) (NASDAQ:GAME) the Sino-native online gaming technology company has some interesting proposals to mull over, the next few days. The offer has come from the parent company – Shanda Interactive. What makes the offer interesting is the fact that the funds or investments behind the offer will be from Shanda Interactive affiliate- Primavera Capital. The offer is interesting as it now gives the limited company that Shanda Games currently is, an opportunity to go private. Additionally, the company also mentioned that the offer was non-binding. The offer for financing the transition will be in the two forms- first as and equity format and second as a debt format. Shanda Games would be at 1.9 billion, roughly $6.90 per share.

Shanda Games mulls over proposal

Shanda Games Limited(ADR) (NASDAQ:GAME) board is currently considering the offer, experts believe. The main point of evaluation of the offer is the fact that Shanda Interactive already owns nearly 76.2% of the company.

Shanda Games Limited(ADR) (NASDAQ:GAME) stock prices saw a rise, following the announcement. However, the shares are trading at about 9% lesser than the offer just made. This has made many investors skeptical about the actual value of the offering.

Shanda Games Limited(ADR) (NASDAQ:GAME) the Chinese multimedia gaming software company offers a wide range of online games as well as other businesses which are related to People’s Republic of China’s region. The products that the company offers are considered to belong to two categories- one category of games which are multiplayer online role-playing games. The other category is the casual games section, which is not considered as separate section of online games.

Shanda Games Limited(ADR) (NASDAQ:GAME) is a $1.74 billion market cap company holding 10,201,865 shares. On the stock market the shares are currently trading at $6.50 up by over 0.85 from previous closing. Current gains are 15.04%.