Shanda said Chen proposed privatization proposal

Xinhua News (Reporter Shen Yu green) Grand Interactive Entertainment Co., Ltd. (hereinafter referred to as "Shanda Network") announced yesterday that the Board of Directors of its chairman, CEO and President Tian Bridge a preliminary, non-binding letter of recommendation.　　Among them, Chen proposed repurchase Grand network already issued public stock, intend to privatize the Grand network. In the letter of recommendation, Chen proposed to purchase the issued shares at $41.35 per depository Voucher (ADS) by Chen, his wife Luo Qianqian (Shanda Network non-executive director) and his brother Danian (Shanda Network COO and director). The offer was priced at a 23.5% per cent premium to the closing price of the October 14 Shanda network. As of September 30, 2011, the trio had a share of about 68.4% per cent of the outstanding Internet shares (except for the options issued).　　In this calculation, the Grand network privatization total price of about 735 million U.S. dollars. Shanda Network on May 14, 2004 on the Nasdaq listing, the issue price per ADS 11 U.S. dollars, 1 ads on behalf of 2 shares of common stock. Due to the slow recovery of the U.S. economy this year, the European debt crisis and other factors, the U.S. stock market is not good, the royal network in the past six months has been a downward trend in share prices, the lowest has been to 30 U.S. dollars.　　Some analysts believe that the privatization or for the future of the Royal network to return to the domestic listing to pave the road, the company may be listed in the SSE board. Hu Longfei, a U.S. stock analyst, said the main reason for the privatisation of the Shanda network was that the market was in poor condition and its share price was undervalued. Given that the buyer has a stake of nearly 70% per cent, the proposed purchase price is also attractive to shareholders, so he believes the chances of success are higher. As for the return to a-share listing, Hu Longfei that Chen may have such considerations; once implemented, Shanda networks could get higher valuations in the domestic market. Share to: