Perfect by the Chairman of the privatization proposal, had tentatively tried

A few days ago, the perfect World announced the Chairman Chi 20 dollars per share of the privatization proposal. To perfect the official response, the perfect World board has just received a preliminary, non-binding proposal from Mr. Pool, and the independent commission has yet to make any decision on how the perfect world will respond.

If the perfect final privatisation offer, then it will become a giant, grand game after another from the United States retreat from the city of traditional gaming companies. At that time, the traditional gaming company, which remains in the U.S. capital market, will have only nine cities and a swim.

The ruin of valuation

The essence of privatization is a merger. A listed company or a large shareholder of a company buys shares in the hands of other small shareholders and individual shareholders, turning the company into a "private" company by the stock exchange market and the "public" company held by all the shareholders, and eventually retire from the city.

According to Chi's proposal, it is hoped that all the perfect world circulation shares that do not belong to Chi will be acquired in the privatisation transaction with a cash of $20.00 per U.S. depository (ADS) or $4.00 per common stock. The price is perfect for the world's 15.76-dollar closing price, at a premium of about 27%.

The time for Chi to submit the privatisation proposal was only 1 years and 2 months from the time the giant announced the privatisation. In such a short period of time, once in China's game market all-powerful giants, grand, perfect have to exit the U.S. capital market, which all stems from overseas Chinese online games business model is not recognized, and then affect the valuation of the three companies.

Although experienced in the first half of the Stock overseas listing window period, but the overseas Chinese online games enterprises do not recognize the change, in the online gaming enterprises in the rapid cycle and scale, p/E and share prices have been falling.

At present, the grand 7.12 Times-fold P/e ratio, perfect before announcing the privatisation proposal is less than 8 times times. The cost of privatization may be more cost-effective than borrowing from banks.

At home, even the capital market's focus on the theme of the game has been at its peak. But some domestic-listed gaming companies still maintain a good price-earnings ratio and valuation, such as the 142 times-fold price-earnings ratio, the palm of the technology is 75.72 times times, the Apollo Interactive backdoor division crown Wood after the P/E ratio of 68 times times. Domestic capital markets are still more tempting than the 10 times-fold earnings ratio overseas.

had tentatively tried

In November 2013, after the Giants first opened the privatisation process, it was reported that the perfect World founder Chi with the major investment banks frequent contacts, hoping to complete the 1.2 billion-dollar valuation of the perfect World company privatisation, but Shanda games in 3 months after the privatization process also opened.

In a short period of time, two gaming companies have announced privatisation, which has certainly consumed many of the market's capital, perhaps the reason why the privatisation was announced almost 1 years later. But in this year, the perfect also did not sit still, in the grand announcement of privatisation 3 months later, the perfect announcement 100 million Dollar Stakes grand, participate in its privatization process.

Perfect at that time the purpose is very clear, if the Giants, Shanda games, domestic or Hong Kong listed after the market reaction is good, p/e rate of rapid growth. Perfect can be negotiated with Shanda, and then sell back to the latter 5.6% of the shares at the same time, the start of privatization to return to the domestic market separate listing process.

If giants, grand games return to the road is not ideal, it can be perfect with a lower price to buy a grand residual shares, completed overseas to the domestic rapid shell listing, or packaging its other business, the overall package after the shell listing.

However, the grand in September announced the introduction of more consortia to participate in its privatization, while its business also carried out a corresponding stripping, at this time perfect in the process of privatization, the role has been with a few months ago a qualitative change, a number of food and some of the separation of business, Let the perfect feel that in the grand body has no advantage, so the perfect final premium to the third party agency Shanghai Acquisition Equity Investment Fund partnership to sell the shares of the grand game, the price of 104,624,717 dollars.

This article comes from: 17173.com Chinese game First portal station detailed source reference: http://news.17173.com/content/2015-01-04/20150104090956077.shtml