Shanda Interactive Entertainment, China's largest online gaming company in terms of revenues, yesterday announced a tender offer to buy a 51% stake in Chinese digital media provider Hurray Holding Company. Both companies are listed in the US.
The acquirer is offering to pay $4.00 per American depositary share, which represents a 25% premium over Hurray's closing price on June 5 and a total acquisition cost of $46.2 million.
Although the deal is not subject to any financial conditions, it is necessary that at least 51% of the company's shares are tendered. Hurray's board has already recommended the proposal to shareholders. Managers and founders hold 23% of Hurray, while venture capitalists own...
¬ Haymarket Media Limited. All rights reserved.
