Shanda Games (fka GAME)

[eastunder]

Shanda Games (GAME) to Enhance Mobile Offerings with $881.5M Acquisition

http://www.streetinsider.com/Corporate+News/Shanda+Games+%28GAME%29+to+Enhance+Mobile+Offerings+with+%24881.5M+Acquisition/8539208.html

Shanda Games Limited (Nasdaq: GAME) has entered into definitive agreements to acquire affiliates providing user and payment platform services from its parent company Shanda Interactive Entertainment Limited.

Shengzhan owns the Shanda Pass database which contains account information, including registration, payment and other user-behavior data that gamers use to access games operated by Shanda Games and an experienced customer service team which handles approximately nine million interactions with game users on average per month. The customer service team was awarded the Best Call Center in China for eight consecutive years from 2005 to 2012 by the China Federation of IT Promotion under the auspices of the Ministry of Industry and Information Technology and has received a five-star certification from the International Customer Management Institute. Shengjing owns approximately 180,000 prepaid card distribution channels nationwide, through which over two million real and virtual prepaid cards were sold monthly on average.

Shanda Games' board of directors formed a special committee of independent directors consisting of Mr. Andy Lin (chair), Mr. Heng Wing Chan and Mr. Yong Gui ("Special Committee"), to consider, evaluate and negotiate the transaction. The Special Committee was advised by outside legal counsel Davis Polk & Wardwell LLP and financial advisor Ernst & Young which delivered a fairness opinion as to the consideration payable by Shanda Games in the transaction. Shanda Games' board of directors, acting upon the unanimous recommendation of the Special Committee, approved the transaction.

The aggregate consideration for the transaction is US$811.5 million, subject to closing adjustments and payable in a combination of cash, deferred payments and settlement of an outstanding loan receivable from Shanda Interactive. Shanda Games' cash, cash equivalents, short-term investments, and restricted cash, net of loans and dividend payable, totaled US$556 million as of March 31, 2013.