BEIJING (dpa-AFX) - Perfect World Co. Ltd. (PWRD), China-based online game developer and operator, reported signing a share purchase agreement to acquire a total of about 30.326 million class A ordinary shares of Shanda Games Ltd. (GAME), an online game developer, operator, and publisher in China. Pursuant to this, the company would purchase these shares from a subsidiary of Shanda Interactive Entertainment Limited, the controlling shareholder of Shanda Games, for $100 million cash. The purchase is likely to be consummated in 30 days.
Further, Perfect World has inked an adherence agreement to become a party to the consortium agreement dated as of January 27, 2014 between Shanda Interactive Entertainment Limited and Primavera Capital (Cayman) Fund I L.P., an affiliate of Primavera Capital Limited, and participate as a new member of the consortium in the proposed 'going private' transaction with respect to Shanda Games.
The Consortium has submitted a preliminary non-binding proposal letter dated January 27, 2014 to Shanda Games' board, whereby the Consortium proposed to buy Shanda Games in a 'going private' transaction for $3.45 per class A or class B ordinary share of Shanda Games, or $6.90 per ADS. The proposal constitutes only a preliminary indication of the interest of the Consortium, subject to negotiation and execution of definitive agreements relating to the proposed acquisition transaction.
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