Shanda Games To Go Private In $1.9 Billion Deal With Chinese Consortium

Shanda Games Limited said Friday it has entered a buyout agreement with a consortium of Chinese investors. The Chinese gaming company said shareholders will receive $3.55 in cash per ordinary share and $7.10 per American Depositary Share in a deal that values the company at about $1.9 billion. The price offers a 46.5% premium over the company's 30-day volume-weighted average price, and a 53.8% premium over its 60-day trading volume-weighted average price. The deal is expected to close in the second half. Shanda shares have gained 14% in the year so far, outperforming the S&P 500's 0.4% gain.