Shanda Interactive Entertainment Limited, an interactive entertainment media company in China, yesterday said that it has received a $740-million in cash takeover offer from a buyer group led by its chairman and chief executive Tianqiao Chen.
Shanda's founder and chief executive, Chen Tianqiao, his wife Luo Qianqian, a non-executive director of the company, and Chen's brother, Chen Danian, a director and the company's chief operating officer, who collectively hold about 68.4 per cent of the company have offered $41.35 per American Depositary Share or $20.675 per ordinary share in cash.
According to the offer letter, the buyer group will form a transaction vehicle for the purpose of the proposed transaction, which is intended to be financed with loan from J P Morgan.
J P Morgan has been engaged by the buyer group as financial advisor and Shearman & Sterling as legal counsel for the proposed transaction.
Shanghai-based Shanda Interactive is China's best-known gaming and entertainment company offering a broad array of online entertainment content on an integrated service platform to a large and diverse user base.
Shanda offers its entertainment content through its subsidiaries and affiliates, including Shanda Games, Cloudary, Ku6 Media, and various other online community and business units.