CDC Corporation (CHINA) released plans for an internal restructuring of CDC Games that would move CDC Games from within China.com Inc. to become a direct business unit of CDC Corporation.
China.com Inc. is a 77% owned subsidiary of CDC Corporation which is listed on the Growth Enterprise Market of the Hong Kong Stock Exchange.
The restructuring will be effected through an agreement whereby CDC Corporation would acquire 100% of CDC Games from China.com Inc for a purchase price of $110 million, $50 million of which will be paid in cash and $60 million of which will be funded through an 18 month note bearing interest at 5% per annum. Additionally, CDC Corporation will pay up to an additional $25 million to China.com in the event CDC Games completes a successful listing on certain recognized stock exchanges within the next 12 months. In connection with the restructuring, a valuation was performed by an independent appraisal firm.
CDC Games Limited is focused on building a diversified mix of online game assets and strategic alliances and is a business unit of CDC Corporation. CDC Games is one of the market leaders of online and mobile games in China with over 37 million registered users.