Shanda Interactive to buy majority share in Hurray! Holding
By APMonday, June 8, 2009
Shanda to buy 51 percent of Hurray! shares
SHANGHAI — Shanda Interactive Entertainment Ltd. said Monday it plans to acquire a majority of shares in Hurray! Holding Co. Ltd.
Shanda, a provider of interactive online games and a variety of cartoons, literature works and music said it plans to acquire 51 percent of the outstanding shares of Hurray! for $46.2 million.
Shanda would pay $4 per American Depositary Share, a 25 percent premium of Hurray’s closing price on June 5.
Hurray! specializes in artist development, music production and wireless music distribution and other wireless value-added services in China. It also organizes concerts and other music events in China through its affiliated music companies.
Completion of the tender offer will be subject to the condition that at least 51 percent of Hurray!’s outstanding shares, on a fully diluted basis, are tendered in the offer and other customary conditions.
The Hurray! board unanimously recommended the offer to its shareholders.
Shanda shares fell $3.17, or 5 percent to $59.09, while Hurray! shares climbed 48 cents, or 15 percent, to $3.68.
