Shanda CEO poised for buyout
- By He Shan
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China.org.cn, October 18, 2011
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Chen Tianqiao, CEO of China's Interent company Shanda Interactive, proposes to buy the remaining stake of the company in an effort ot take the company private. [CFP] |
Shanda Interactive, China's leading Internet company, announced Monday evening that its CEO Chen Tianqiao made a preliminary non-binding offer to buy the outstanding shares of the company that his family did not own, a move possibly to take the Nasdaq-listed company private.
The offer was initiated by Chen's family, including his wife Luo Qianqian, who is a non-executive director of the company, and Chen's brother, Chen Danian, a board director and the company's chief operating officer.
As of Sept. 30, the family held a 68.4 percent stake in the company. The offer, worth about US$736 million, valued the company at US$41.35 for each American Depositary Share, which was a 24 percent premium to the closing price on Friday last week.
According to the proposal, Chen's family will set up an independent company which will be devoted to raising fund to back up the acquisition. Also, the proposal mentioned that the family has held preliminary talks with J.P.Morgan and obtained a “highly confident” letter from the firm.
Shanda has established an ad hoc board to review the offer and has yet to make a reply.
China's business press carried the story above on Tuesday.
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