June 8, 2009
Shanda to Purchase Majority Stake In Hurray!
Shanghai, China – June 8, 2009 – Shanda Interactive Entertainment Limited (or Shanda) (NASDAQ: SNDA), a leading interactive entertainment media company in China, and Hurray! Holding Co., Ltd. (or Hurray!) (NASDAQ: HRAY), a leader in artist development, music production and wireless music distribution and other wireless value-added services in China, today announced that they have entered into a definitive agreement under which Shanda, through a wholly-owned subsidiary, will commence a tender offer to acquire 51% of the total outstanding ordinary shares of Hurray! on a fully diluted basis (including shares represented by the American Depositary Shares of Hurray! (“ADSs”)) at a price of US$0.04 per ordinary share (or US$4.00 per ADS).
The offer price represents an approximately 25% premium over Hurray!’s closing price on NASDAQ on June 5, 2009. The total transaction value is approximately US$46.2 million.
Completion of the tender offer will be subject to the condition that at least 51% of Hurray!’s outstanding shares, on a fully diluted basis, are tendered in the offer and other customary conditions. If more than 51% of the outstanding shares of Hurray! are tendered in the offer, then the number of shares Shanda will purchase from each tendering shareholder will be reduced on a pro rata basis. The transaction is not subject to any financing conditions. The Board of Directors of Hurray! has unanimously recommended the offer to Hurray!’s shareholders.
Hurray!, a NASDAQ-listed company, is a leader in artist development, music production and offline distribution and also organizes concerts and other music events in China through its affiliated music companies. Hurray! is also a leading online distributor of music and music-related products such as ringtones, ringbacktones, and truetones and other types of wireless value-added services to mobile phone users in China.
Mr. Tianqiao Chen, Chairman of the Board of Shanda said, “We respect the work by Hurray!’s board and management and their efforts in defining Hurray!’s strategies and direction and believe that Shanda’s user base, resources and platform will facilitate the continued execution of these strategies.”
Mr. Qindai Wang, Chairman of the Board of Hurray! said, “We believe that Hurray! and Shanda share a common vision to be leaders in digital entertainment in which the complementary content, distribution platforms and large user base will present both companies with opportunities to achieve synergies going forward.”
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