Tag Archives: Giant Interactive

China News Digest: October 21, 2016

The following press releases and news reports about China companies were carried on October 21. To view a full article or story, click on the link next to the headline.
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  • China Mobile (HKEx: 941) Announces Financial Results for First 3 Quarters (HKEx announcement)
  • Homestay Business of Ctrip (Nasdaq: CTRP) and Qunar Acquired by Tujia (PRNewswire)
  • China iOS App Store Passes US in Sales to Become World’s Largest – Report (Chinese article)
  • Walmart (NYSE: WMT) Opens Flagship Store on JD.com (Nasdaq: JD) (Chinese article)
  • Giant Interactive to Buy Online Game Maker Playtika for 30.5 Bln Yuan (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

GAMES: NetEase Keeps Warcraft, New Giant Buys Playtika

Bottom line: Giant Interactive is banking on Playtika to jump-start its stalled growth, while NetEase’s extension of a major licensing deal will further consolidate its position as China’s second largest online game firm.

NetEase extends Blizzard agreement

A couple of gaming stories are making headlines as we head towards the long Chinese national day holiday, with NetEase (Nasdaq: NTES) and Giant Interactive both inking major deals that should help cement their place as 2 of China’s top players. The first deal has NetEase extending its long-running licensing deal with top global game designer Blizzard Entertainment (Nasdaq: ATVI) for some of its most popular titles, including the World of Warcraft series. The second has Giant buying Israeli social game maker Playtika, in a deal that was previously reported to be worth around $4.4 billion. Read Full Post…

China News Digest: September 29, 2016

The following press releases and news reports about China companies were carried on September 29. To view a full article or story, click on the link next to the headline.
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  • China Postal Savings Bank (HKEx: 1658) Fails to Make Waves in $7.4 Bln HK Debut (English article)
  • New Century Cruise (Shenzhen: 002558) to Buy Mobile Games Business Playtika (English article)
  • Fosun (HKEx: 656) Joins First Public-Private Funded High-Speed Rail Line Group (Chinese article)
  • Apple (Nasdaq: AAPL) Picks Beijing for First China R&D Center, to Invest 300 Mln Yuan (Chinese article)
  • Baidu (Nasdaq: BIDU) Self-Driving Car to Debut in 2018, Cost More Than 1 Mln Yuan (Chinese article)

China News Digest: July 30-August 1, 2016

The following press releases and news reports about China companies were carried on July 30-August 1. To view a full article or story, click on the link next to the headline.
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  • Giant Interactive, Alibaba’s (NYSE: BABA) Jack Ma to Pay $4.4 Bln for Game Firm Playtika (Chinese article)
  • China Postal Bank’s $10 Bln IPO Stirs Foreign Interest, But Valuation a Worry (English article)
  • Besttone Holdings to Pay 6.9 Bln Yuan for China Telecom (HKEx: 728) Online Video Assets (Chinese article)
  • Meituan-Dianping Roll Out New Food and Beverage Platform (Chinese article)
  • Fosun (HKEx: 656) to Buy Brazilian Real Estate Management Fund Rio Bravo (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

ENTERTAINMENT: Newly Re-Listed Giant Joins Global Game Hunt

Bottom line:  Giant Interactive’s new bids for Caesars Entertainment online game unit and Supercell show it has lots of cash for global acquisitions, which it hopes to use to vault it into the big leagues of Chinese online game companies.

Giant chases global acquisitions

Online gaming company Giant Interactive may be mostly a memory for US investors, following its de-listing from New York in 2014. But the company wants the world to know it still has global aspirations. That’s my interpretation of the latest series of reports, which have Giant pursuing several major global acquisitions in Finland, Israel and the US.

Two of the reports appear to be related, and say Giant is in talks to buy the online game unit of US gambling giant Caesars Entertainment (Nasdaq: CZR), which includes Israeli game developer Playtika. One of the reports adds that Giant is also in talks to potentially join a group led by Chinese Internet giant Tencent (HKEx: 700), which has agreed to buy a controlling stake of Finnish game giant SupercellRead Full Post…

China News Digest: July 23-25, 2016

The following press releases and news reports about China companies were carried on July 23-25. To view a full article or story, click on the link next to the headline.
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  • MasterCard (NYSE: MA) May Apply for China Payment License This Year (English article)
  • Baidu (Nasdaq: BIDU) Maps Enters 13 South American Countries as Olympics Nears (Chinese article)
  • Samsung (Seoul: 005930) Countersues Huawei in Lawsuit Tug-of-War (Chinese article)
  • Giant Interactive Said to Lead Group Bidding for Caesars Online Game Unit (English article)
  • Private Car Service Provider UCar Lists on China OTC, Valued at 40 Bln Yuan (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

BUYOUTS: Regulator Re-think Boosts Privatizing China Stocks

Bottom line: The CSRC’s reported plans for a backdoor listing quota for companies returning to China from New York should restore confidence that well-conceived buyout plans by big names like Qihoo will succeed.

Regulator reopens gate for backdoor listings in China

After a massive sell-off at the beginning of the week on concerns of a major new roadblock to their homecoming plans, Chinese companies privatizing from New York have seen their shares rebound sharply on reports of a regulatory compromise that would allow them to re-list in China. The story is mostly based on rumors about an internal debate within the China Securities Regulatory Commission (CSRC), China’s stock regulator, which is worried about a potential future flood of backdoor listings by local companies now privatizing from New York.

The sell-off for companies like Qihoo (NYSE: QIHU), Momo (Nasdaq: MOMO) and 21Vianet (Nasdaq: VNET) at the start of this week came after reports emerged saying the CSRC might halt all such backdoor listings, which typically see a company inject its assets into an existing listed shell company. The regulator took the unusual step of saying it was simply studying the issue, but that didn’t ease concerns that New York privatization bids for Qihoo and others might collapse if backdoor re-listing route in China was closed. Read Full Post…

BUYOUTS: Privatizing Shares Tank on Talk of Homecoming Chill

Bottom line: Many privatization bids by Chinese firms hoping to re-list in China could collapse if the CSRC cracks down on backdoor listings, though de-listing plans backed by big private equity names could still succeed.

Privatizing shares tumble on CSRC rumors

Rumors that they might get a chilly reception from China’s securities regulator has sparked a major sell-off for shares of US-traded companies trying to privatize and re-list at home in search of higher valuations. The dive is one of the largest I’ve seen for any single group in quite a while, and could present a great buying opportunity for anyone who believes these companies can still successfully privatize and re-list in China.

But in this case I might be more inclined to agree with the pessimists, since China’s securities regulator is quite conservative, even though I’ve said it should continue to allow these re-listings. (previous post) In this case the China Securities Regulatory Commission (CSRC) may also be acting under direct orders from Beijing, which is already worried about another major sell-off on domestic stock exchanges like one early this year. Read Full Post…

IPOs: Better Oversight, Not Ban, Needed for China Backdoor Listings

Bottom line: The CSRC should take steps to better regulate backdoor listings by Chinese companies privatizing from New York to ensure market stability, but shouldn’t ban the process completely.

CSRC weighs closing backdoor listings

Chinese companies planning to re-list at home after disappointing results with overseas IPOs got some troublesome signals last week, when rumors emerged that China’s securities regulator might be planning to slow or halt a mechanism that has quickly become the preferred route for such homecomings.

That mechanism has seen newly privatized companies make back-door listings using Shenzhen- and Shanghai-traded firms that are often just shells of former state-run enterprises whose own businesses have withered. Returning companies have chosen such a path because conventional IPOs in China have slowed to a crawl due to the regulator’s concerns about market volatility, creating a huge waiting line for new listings. Read Full Post…

BUYOUTS: iKang’s Poison Pill, CMGE’s China Homecoming

Bottom line: iKang’s poison pill plan will kill a hostile offer for the company but could force a management-led group to raise its earlier bid, while CMGE’s China backdoor listing shows a quickening of the process for US-listed Chinese companies to return home.

iKang launches poison pill plan

The first bidding war for a Chinese company looking to privatize from New York has taken an interesting twist, with word that medical clinic operator iKang (Nasdaq: KANG) has launched a shareholder rights program often called a “poison pill”, aimed at preventing hostile takeovers. Usually I’m relatively neutral on this kind of defensive move, as it’s often aimed at getting shareholders better value for their money. But in this case the move seems like a somewhat abusive use of power by iKang’s founder and chief executive to protect his own earlier and significantly lower buyout offer for the company.

Meantime another headline from the recent wave of US-listed Chinese companies to privatize has gaming company China Mobile Games (CMGE) already preparing to re-list in China. If successful, CMGE’s homecoming would be remarkably quick, since it only completed its privatization from New York 3 months ago.  Read Full Post…

BUYOUTS: Giant Squeaks Through Back Door, Focus Draws Closer

Bottom line: Focus Media and Giant Interactive will become the first 2 companies to re-list in China after privatizing from New York, but will still struggle for attention and could end up with valuations roughly equal to what they had previously.

Giant completes backdoor listing, Focus close

China’s first 2 companies to attempt re-listings at home after privatizing from New York are both in the headlines today, led by word that Giant Interactive has completed its backdoor listing using a company called New Century Cruises (Shenzhen: 002558). At the same time, separate reports are saying that outdoor advertising specialist Focus Media is on the cusp of completing its own backdoor listing after receiving official approval from the securities regulator to execute its plan using another Shenzhen-listed company called Hedy Holding (Shenzhen: 002027).

The completion of both deals right around the same time seems like more than coincidence, and probably coincides with the regulator’s announcement last week that it will resume new IPOs after a 5 month hiatus due to volatility on China’s stock markets. It’s also quite revealing that both Giant and Focus are big Shanghai-based companies, meaning they probably have more financial sophistication and other resources than most other companies seeking to make a similar homeward migration. Read Full Post…