Shanda agrees to go private in a deal valued at $1.9 billion

(Reuters) - Chinese online game developer Shanda Games Ltd said that it has agreed to be taken private by Capitalhold Ltd and its unit Capitalcorp Ltd in a deal valued at $1.9 billion. Capitalhold will pay $3.55 per ordinary share and $7.10 per American Depositary Share for Shanda, which is at a premium of 46.5 percent to Shanda's 30-day average trading price. In September private equity firms Carlyle Group, and Fountainvest Partners pulled out of the consortium backing the bid to buy Shanda Games, raising doubts over the future of an up to $850 million leveraged buyout loan which was being raised from banks to back the buyout. China online game developer Perfect World Co Ltd and China-focused private equity firm Primavera Capital also exited the consortium.



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