The story of capital markets is often new.

Source: Internet
Author: User
Keywords Shi Yuzhu delisting stock price
Tags .net average level company consortium credit credit limit exchange game

Yesterday, the giant network announced a final privatisation agreement, the price of 12 U.S. dollars per share, the transaction will be completed in the second half of 2014, the price of the offer of November 25, 2013 announced the 11.75 U.S. dollar acquisition price Premium 2.1%.

Once the transaction is completed, the parent company will benefit from a buyer consortium comprising Shi Yuzhu and Hongyi capital. The Giants network will become the first pure online game China concept unit to retire from the open stock exchange market.

Acquisition on the price of about 3 billion dollars

On November 1, 2007, the giant net IPO in the US, with a total financing of more than 1 billion dollars. In the early days of the IPO, the giant's share price rose to $20, followed by a global slump in the share price of Chinese online gaming companies, which fell to $4 a year in 2011.

Last April, the giant founder Shi Yuzhu decided to resign from the giant network C E O, the successor of Liu Wei. November, the giant network announced that the company's board has received the Chairman Shi Yuzhu (and some of its affiliated companies) and a subsidiary of the Baring Asia Investment, a consortium of 11.75 U.S. dollars per share of the initial privatisation offer.

Yesterday, the Giants network announced the final merger agreement, announced that privatization and G iant investm Ent Lim ited and its wholly-owned subsidiary of G Iant M Erger Lim ited agreed. Under the merger agreement, G Iant investm entlim ited will buy the giant's shares at $12 a share, with a total purchase price of about 3 billion dollars.

The price premium of 11.75 USD in the previous privatisation offer was 2.1%, compared with the closing price of the NYSE on November 22, 2013, with a premium of 13 to 18.5% and 30 per cent, compared with the weighted average price of 60 days and 31.6% days prior to November 22, 2013, respectively, at a premium of 33.6%.

After the transaction is completed, the parent company will benefit from the buyer's consortium of Shi Yuzhu and Baring Hongyi Capital, and the buyer's consortium members hold 49.3% of the Giants ' net.

The first to return to the city online games in the stock

Over the past two years, China's concept stocks have gone through a downturn and a new wave of retreat since the 2011 privatization of the Grand Internet. The giant net will become the first online game China concept unit to retire from the open stock exchange market.

Earlier, David Esrich, senior vice president and head of capital markets at the NYSE, said publicly that privatisation was a natural phenomenon in the development of listed companies, with 80-100 companies privatized or merged in 2013 to leave the open market. This is natural in the process of listed companies, but also a fair representation of the company's valuation.

But at the same time, a new group of companies is starting the process of IPOs in the United States, in Saturday, Sina Weibo formally provided the Securities and Exchange Commission with an IPO application document, plans to raise 500 million U.S. dollars; in Sunday, Alibaba announced the launch of the U.S. listing.

Chinav Enture Group analyst Li Ling told reporters in the south, in addition to the enterprise's own financing and equity incentive needs, behind the V C/pe investors are also to promote the shares to the United States listed on the important strength. "The boom in U.S. listings since the end of October last year has brought huge returns to the investment institutions behind them." At the end of 2013, a number of Chinese enterprises in the U.S.-intensive listing, whether in the market response or the heat of public opinion, will bring more convenience for later, attract more enterprises to start to try to the U.S. IPO, is expected to further warmer in 2014. ”

At the same time, Minsheng Bank has previously announced that the company's Board of Trustees to consider the adoption of the "G iant m Erger lim-ited related credit proposal", agreed to participate in the syndicate to give G iant m Erger Lim ited loans, The credit limit is not more than 182.5 million U.S. dollars, the period of 5 years, the loan interest rate and the handling fee price level is not lower than the same industry market average level. And the company's actual control of human Shi Yuzhu.

Reporter: Cherius intern Huang Chunhui

[Industry view]

Why did the Shi Yuzhu finance the privatization?

Recently, Minsheng Bank Bulletin said, the company's board of Trustees to consider the adoption of the "giant M Erger Lim ited related credit proposal", agreed to participate in the syndicate to give G iant M Erger Lim ited ("M Ergeco") loans, The company credit limit is not more than 182.5 million U.S. dollars, the term 5 years, the loan interest rate and the handling fee price level is not lower than the same industry average level.

In fact, M Ergeco Actual control person is Shi Yuzhu, he this time borrow is why? To a large extent, to raise money for privatization.

November 25, 2013, the giant network announced that has received the Chairman Shi Yuzhu and Baring investment in Asia's privatisation offer to giant network 240 million total equity calculation, the buyer group to the giant network valuation of 2.82 billion U.S. dollars.

At that time, the consortium members actually owned about 47.2% of the company's total equity. Therefore, Shi Yuzhu and partners need to raise about 1.5 billion dollars of money to buy the remaining shares.

In February this year, it was reported that Lenovo investment of Hong-Yi Investment to join the consortium, the amount of investment in 500 million U.S. dollars. Together with the loans provided by CMBC today, the consortium formed by Shi Yuzhu or has basically pooled the necessary funds.

The industry thinks, although Shi Yuzhu is Minsheng Bank shareholder, hold 4.08% stake in Minsheng Company, but he did not set out to raise funds, the reason is Minsheng Bank is not the highest price, it from the highest 11.22 yuan to the current 7.7 yuan, not the most reasonable time to reduce, Shi Yuzhu has personally committed to "three years without reduction."

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