Chinese online game developer and operator Shanda Games announced that they have signed a final privatization agreement with Capitalhold Limited and its wholly-owned subsidiary Capitalcorp Limited.

According to this final agreement Capitalhold Limited will pay USD3.55 per ordinary share, which is USD7.10 per ADS, to Shanda Games. Calculating by this price, the valuation of Shanda Games will reach about USD1.9 billion.

On the completion of the deal, Shanda Games will integrate with Capitalcorp Limited as a subsidiary of Capitalhold Limited. The transaction is expected to close in the second half of 2015. As the result of the transaction, Shanda Games will be delisted from Nasdaq and become a private company.

On January 24, 2014, Shanda Games announced that they received a privatization proposal from its parent Shanda Interactive Entertainment Limited and a subsidiary of Primavera Capital Group, aiming to acquire Shanda Games for USD6.9 per ADS. In April 2014, Perfect World announced that they would participate in the transaction and agreed to acquire 30.33 million Shanda Games class-A ordinary shares for USD100 million.

However, in September 2014, Perfect World sold out the purchased shares and withdrew from the privatization transaction. After that, Shanda Interactive Entertainment Limited and Primavera Capital Group dropped out from the privatization alliance as well.


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