Capitalhold to buy Chinese online game developer Shanda Games for $1.9 bn

Capitalhold Ltd and its subsidiary Capitalcorp Ltd yesterday struck a deal to buy Chinese online game developer Shanda Games Ltd in a $1.9 billion deal.

Under the deal, Capitalhold and Capitalcorp will buy Shanda Games for $3.55 per ordinary share and $7.10 per American depositary share in cash, representing a premium of 46.5-per cent over the company's 30-trading day average price.

The consortium of buyers plan to fund the transaction through cash contributions from Zhengjun Investment, Ningxia Silkroad, Zhongrong Legend and others.

Shanda Games had been in play for over a year and private equity firms Primavera Capital, Carlyle Group and FountainVest Partners Co backed out from their offer made in September.

Shanda Games is a leading online game developer, operator and publisher in China. It offers a diversified game portfolio, which includes some of the most popular multiplayer online games and mobile games in China and in overseas markets.

Its published and operated games include AION, MapleStory, The World of Legend, The Age, Magical Land, Ragnarok Online, Dungeons & Dragons Online, Crazy Arcade, and GetAmped.