Shanda Games goes private

    December 06, 2011 | BY

    clpstaff &clp articles

    Shanda Interactive Entertainment (Shanda) underwent a going private merger with Premium Lead Company (Premium Lead). The Chairman of Shanda, Tainqiao Chen,…

    Shanda Interactive Entertainment (Shanda) underwent a going private merger with Premium Lead Company (Premium Lead). The Chairman of Shanda, Tainqiao Chen, his wife and brother, jointly owned Premium Lead. The transaction values Shanda's equity at US$2.3 billion on a fully diluted basis.

    The deal is one of the largest privatisations of a US-listed PRC company and it was structured as a merger after which Premium Lead would acquire Shanda. Bank of America Merrill Lynch and JP Morgan were the financial advisors.

    Davis Polk & Wardwell and Conyers Dill & Pearman served as US counsel and Cayman Islands counsel to Shanda, respectively. The Special Committee of the Board of Directors of Shanda was advised by Weil Gotshal & Manges and Maples and Calder as to US law and Cayman Islands law, respectively. Bank of America Merrill Lynch's US advisor was Simpson Thacher & Bartlett, while JP Morgan's counsel was Clifford Chance. Shearman & Sterling acted as US counsel to the Buyer group.

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