SHANGHAI, Oct. 17, 2011 /PRNewswire-Asia/ -- Shanda
Interactive Entertainment Limited, incorporated in the Cayman Islands ("Shanda" or the
"Company") (Nasdaq: SNDA), a leading interactive
entertainment media company in China, today announced that its Board of
Directors has received a preliminary non-binding proposal letter
from Mr. Tianqiao Chen, Chairman of the Board, Chief Executive
Officer and President of Shanda, to acquire all of the outstanding
ordinary shares of the Company not currently owned, legally or
beneficially, by Mr. Tianqiao Chen, his wife Ms. Qianqian Luo, who is also a non-executive
director of Shanda and his brother Mr. Danian Chen, who is also the Chief Operating
Officer and a director of Shanda (together, the "Buyer
Group"), for US$41.35 per
American Depositary Share ("ADS") or $20.675 per ordinary share in cash. As of
September 30, 2011, the Buyer Group
controlled approximately 68.4% of the outstanding shares of the
Company (excluding outstanding options of the Company).
According to the proposal letter, which is dated as of
October 15, 2011, the Buyer Group
will form a transaction vehicle for the purpose of pursuing the
proposed transaction, which is intended to be financed with
debt. The proposal letter states that the Buyer Group
has held preliminary discussions with J.P. Morgan about financing
the proposed transaction and has received a "Highly Confident"
letter from J.P. Morgan. The Buyer Group expects that commitment
for the required debt financing, subject to terms and conditions
set forth therein, will be in place by the time the definitive
documentation for the proposed transaction is signed. The
proposal letter also states that J.P. Morgan has been engaged by
the Buyer Group as financial advisor and Shearman & Sterling
LLP as legal counsel in connection with the proposed
transaction.
The Company's Board of Directors has formed a special committee
of independent directors (the "Special Committee")
consisting of Jingsheng Huang,
Chengyu Xiong and Kai Zhao to consider the proposed transaction.
The Special Committee intends to retain advisors, including an
independent financial advisor and legal counsel, to assist it in
its work. No decisions have been made by the Special Committee with
respect to the Company's response to the proposed transaction.
There can be no assurance that any definitive offer will be made,
that any agreement will be executed or that this or any other
transaction will be approved or consummated.
About Shanda Interactive Entertainment Limited
Shanda Interactive Entertainment Limited (Nasdaq: SNDA)
("Shanda") is a leading interactive entertainment media
company in China, offering a broad
array of online entertainment content on an integrated service
platform to a large and diverse user base. Shanda offers its
high quality entertainment content through its subsidiaries and
affiliates, including Shanda Games,
Cloudary, Ku6 Media, and various other online community and
business units. The broad variety of content ranges from massively
multi-player online role-playing games (MMORPGs) and advanced
casual games, to social network games, e-sports, literature, film,
television, music, and video etc. By providing a centralized
platform through which Shanda can deliver its own content as well
as third-party content, Shanda allows its users to interact with
thousands of other users while enjoying some of the best
entertainment content available in China today. Shanda: "Interaction enriches
your life". For more information about Shanda, please visit
http://www.snda.com.
Contact
Shanda Interactive Entertainment Limited
Dahlia Wei, IR Associate
Director
Elyse Liao, IR Senior Manager
Phone: +86-21-6058-8688 (Shanghai)
Email: IR@snda.com
Christensen Investor Relations
China:
Christian Arnell
Phone: +86-10-5826-4939
Email: carnell@christensenir.com
United States:
Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
SOURCE Shanda Interactive Entertainment Limited