Century Huatong to Buy Shengyue Network for USD4.35 Billion
Xu Wei
/SOURCE : Yicai
Century Huatong to Buy Shengyue Network for USD4.35 Billion

(Yicai Global) Sept. 12 -- Zhejiang Century Huatong Group plans to buy 100 percent of Shanghai Yaoquru Capital Partnership's stake in Shengyue Network Technology Shanghai by issuing shares or paying in cash. The value of the underlying assets is estimated at CNY29.8 billion (USD4.35 billion), Century Huatong Group, which is migrating into the gaming sector, said today.  

Shengyue Network owns the online gaming business, major non-operating assets and the core business team of the former Nasdaq-listed Shanda Games. The parties acknowledge that Shengyue Network pledges its net profit after extraordinary gains and losses will be CNY2.0 billion this year, CNY2.5 billion next year and CNY3.0 billion in 2020.

Shengyue Network's operating income from Shanda Games was CNY4.19 billion and net profit was CNY1.5 billion last year. Shanda Games' operating income was CNY1.07 billion and net profit was CNY540 million (USD78.6 million) from January to April, per Shanda Games' announcement.

Century Huatong plans to issue shares to up to 10 qualifying specific investors via private solicitations to raise up to CNY3.1 billion in funds to support the merger and acquisition.

Shanda Games listed on Nasdaq in September 2009 as a well-known online game operator. It became the largest initial public offering on the exchange that year. Shanda Games then started its privatization in January 2014 and delisted in late 2015. It was valued at USD1.9 billion just before it went private.

Editor: Ben Amour

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