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Carlyle, Fountainvest exit $1.9 billion bid for Shanda Games

Published 03/09/2014, 08:14
Updated 03/09/2014, 08:20
Carlyle, Fountainvest exit $1.9 billion bid for Shanda Games

HONG KONG (Reuters) - Private equity firms Carlyle Group and Fountainvest Partners have pulled out of a consortium backing a $1.9 billion (1.15 billion pound) bid to buy U.S. listed online games developer Shanda Games Ltd, Shanda said on Sept. 3.

China online game developer Perfect World Co Ltd and China-focused private equity firm Primavera Capital have also exited the consortium, the company said.

The defections raise doubts over the future of an up to $850 million leveraged buyout loan which was being raised from banks to back the buyout.

Shanda Interactive Entertainment Ltd and an affiliate of Primavera, which together held 76.2 percent of Shanda, in January had offered $6.90 per American depositary share to buy the company, valuing it at $1.9 billion.

Rival Giant Interactive Group Inc had received a go-private offer in November from Chairman Yuzhu Shi and an affiliate of Baring Private Equity Asia, valuing the company at about $2.8 billion.

Fountainvest joined the Shanda consortium in April, while Carlyle joined in May.

Shanda said in its statement that an affiliate of Orient Securities Co Ltd, an affiliate of Haitong Securities Co Ltd and Ningxia Zhongyincashmere International Group Co Ltd have joined the consortium as new members.

(Reporting by Stephen Aldred)

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