Why $811.5 million acquisition of the parent company shanda games two assets?

shanda announced today by the final agreement signed with its parent company shanda interactive entertainment, from which will be Shanghai sheng exhibition network technology company (hereinafter called sheng exhibition) and tianjin cheng jing trade co., LTD. (hereinafter called cheng jing), transaction amount is $811.5 million.

reveal two companies veil

hold exhibition registration, on January 29, 2010, inject capital is 10 million yuan, by Mr 2 habib gb as a legal person.

as an online service platform, content of exhibition mainly is given priority to with shanda games operators offer online billing, user authentication, customer service, the fatigue and data support and other services, including registration, payment and other performance when a user access to the grand game of user behavior data. As of the first quarter of 2013, the total has 2013 registered accounts, more than 140 million active accounts, and more than 14 million active subscribers; Its experienced customer service team, the average monthly interact with users have about 9 million times.

the spectacle is for shanda distribution and promotion of the game prepaid card dealers, game players to buy with a prepaid card in an online game virtual items or game time. The company mainly to pay directly by bank card, virtual and physical channel sales of three point card, across the country has about 180000 channels of terminal, monthly sales point card more than 2 million copies.

buy the purpose behind

the acquisition event, shanda games given the official to speak is: company hope through this deal 4 purpose, respectively, including promoting company mobile platform construction, improve the company’s cost structure and increase earnings per share, to optimize the company cash usage and reduce recurrent related transactions and solve the problem of related loans.

at the early stages of the broader economy recover gradually, and because of any shares in the rally, shanda games so far in the year, the stock continued to rise. Cloud network hunting think that with the strengthening of shanda games mobile strategy has a certain relationship. Recently, shanda games to the mobile game development, in the purchase can be seen in the exhibition and cheng jing its want to build their own platform, make its large user base to better work, and because acquisition can subtract shanda games cost structure of two main parts, can let the company earnings per share growth of 40% to 50%. Also indirectly reduce sales costs, simplifies the equity structure, make it more complete platform promotion.

cost

in the first quarter of 2013, shanda games pay service charge of exhibition and cheng jing is equivalent to the company’s total net revenue of about 21.3%. The deal’s total amount is $811.5 million, will be sent to you by cash, deferred payment and payment receivable from shanda is complete. As of March 31, 2013, shanda games held in cash and cash equivalents, short-term investments, restricted cash, net lending and dividend payable totaled $556 million.

the deal is expected in the third quarter of 2013.