Deutsche Bank expects a grand repo deal to be completed soon the price premium is reasonable

While the Shanda network is the first company to announce plans to buy back public shares in Chinese Internet companies that have so far been listed overseas, Deutsche Bank analysts predict that the repurchase deals are likely to be completed and that the price premium is reasonable. DB point of view, the big shareholder is currently committed to the grand from a network gaming operators to diversify the network entertainment platform expansion, such expansion needs to use the money from the game business to cultivate the new business is not the game. In the opinion of analysts, the grand financial situation will remain under pressure for the foreseeable future, given the uncertainty surrounding the burgeoning business that has been hatched.　　The deal will not affect the grand long-term strategy, but would allow major shareholders to take on more of the risk of developing an integrated network interactive entertainment platform. DB analysts believe that the relevant repurchase transactions will increase the value of the shareholding of public shareholders, referring to the recent closing price, for public shareholders (such as small shareholders) the price premium is reasonable. Analysts expect the deal to be completed, with an estimated trading price of 22 times times earnings per share in 2011 (Non-US GAAP), and 14 times multiples in 2012.