Three Firms on Shanda Games $1.9 Billion Take-Private
Wilson Sonsini Goodrich & Rosati, Latham & Watkins and Davis Polk & Wardwell have the lead roles on a proposed $1.9 billion take-private of Shanghai-based Chinese video game developer Shanda Games Ltd.
Nasdaq-listed Shanda Games, which developed the popular Chinese online game World of Legend, is majority-owned by Shanda Interactive Entertainment Ltd., which was itself taken private in a $2.3 billion transaction in 2011. Shanda Interactive also owns Shanda Literature, China’s largest online publisher.
Shanda Interactive and Beijing-based investment firm Primavera Capital Ltd currently own 76.2 percent of Shanda Games and have offered to acquire the outstanding shares for $3.45 per share. Shanda Games said its board will form an independent committee to evaluate the proposal.
Last November, Shanghai-based Giant Interactive Group Inc., a major competitor of Shanda Games, also announced it was considering delisting from the New York Stock Exchange as part of a $2.86 billion take-private deal. Both companies' stocks have performed relatively poorly in the United States, and analysts say they are likely considering r-listing in China later on.
Hong Kong partner Weiheng Cheng and Zhan Chen are leading the Wilson Sonsini team advising Shanda Interactive. Primavera Capital is being represented by Latham & Watkins.
Davis Polk & Wardwell is advising Shanda Games.