The following press releases and media reports about Chinese companies were carried on January 26. To view a full article or story, click on the link next to the headline.
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China Bears Descend on Alibaba (NYSE: BABA) as Economy Woes Grow (English article)
Coolpad (HKEx: 2369) to Raise at Least HK$719 Through Rights Issues (HKEx announcement)
Shanda Group Ends Shanda Games Ties, To Transform As Global Investment Firm (PRNewswire)
Bottom line: iDreamSky’s finalized buyout offer marks the start of a new wave that will see more than a half dozen US-listed Chinese firms sign similar offers by the Lunar New Year, mostly at the same prices from original privatization deals announced last year.
iDreamSky finalizes buyout bid
The New Year is kicking off with a shot of deja vu, as a wave of companies that announced privatization bids in the first half of 2015 are now returning to investors with concrete offers. In the latest chapter of this two-part wave, mobile game operator iDreamSky (Nasdaq: DSKY) has just announced its signing of a formal deal to take the company private.
iDreamSky announced its original intent to privatize last June, at the height of a wave that saw about 3 dozen such de-listing bids proposed last year, mostly in the first half. The wave of announcements skidded to a halt in mid June when China’s stock markets underwent a massive correction after an even larger rally. But with China’s markets showing signs of stability, the de-listing movement has resumed. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 20. To view a full article or story, click on the link next to the headline.
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Bottom line: China Mobile Games could be combined with Shanda Games if buyouts for the 2 companies succeed, followed by a re-listing in China that could gain strong interest from local investors.
China Mobile Games joins de-listing queue
The latest news that China Mobile Games (Nasdaq: CMGE) has received a buyout offer won’t surprise anyone, as it becomes the latest New York-listed Chinese Internet firm to receive such a bid due to its low valuation. What does come as a slight surprise is investor reaction to the bid, which saw China Mobile Games’ share price drop to well below the offer price. The could reflect some skepticism about the quality of this particular bid, which is coming from a Chinese securities brokerage.
This deal marks the latest in a long string of similar buyouts for US-listed Chinese firms whose shares have often languished in New York due to lack of interest from western investors who are unfamiliar with these names. Many of the companies are eying quick re-listings in their home China market, where they believe they can get valuations that are as much as double what they were worth in New York. Read Full Post…
Bottom line: A booming China stock market and IPO reforms could fuel a new wave of re-listings by Chinese tech and media firms that were formerly traded in New York, led by an upcoming backdoor listing by Focus Media.
Xueda gets buyout offer
A pair of stories in the headlines today are highlighting a nascent movement that could see a growing number of US-listed Chinese firms take down their shingle in New York to return to stock markets closer to home. No companies have made such a move yet, but advertising specialist Focus Media could soon become the first with word that it’s moving closer to making a backdoor listing in China after leaving New York in 2013.
Meantime in a related piece of news Xueda Education (NYSE: XUE) said it has received a buy-out offer from Chinese financial firm Insight Investment (Shenzhen: 000526). Such a move would continue a trend that has seen a growing number of neglected US-listed Chinese firms abandon New York, where their shares have stagnated over the last few years. Read Full Post…
Bottom line: Shanda Games is likely to close its privatization by next month, as group founder Chen Tianqiao finishes dismantling his entertainment empire to try a possible new career in private equity.
De-listing looms for Shanda Games
The long and tortured privatization Shanda Games (Nasdaq: GAME) could finally be near, with word that a group bidding for the faded online gaming giant has finalized its funding for a $1.9 billion buyout. If and when this buyout finally closes, it will mark the end of a privatization bid that began more than a year ago. That would easily make it the most drawn out such buyout among about a dozen major Chinese companies that have left New York over the last 2 years due to lack of interest from investors. Read Full Post…
Bottom line: New developments in the break-up of Shanda Group are likely to result in the successful sales of its games and literature units in the next 6 months.
Cloudary pools resources with Tencent literarture
The slow-motion break-up of former online entertainment superstar Shanda Group continues in 2 different headlines, with word that its core online literature and gaming businesses are set to be taken over by Internet giant Tencent (HKEx: 700) and a couple of major brokerages, respectively, in separate deals. Both of these deals look quite exciting, as they involve the entry of serious-looking buyers who could ultimately use their acquired Shanda assets to create some interesting and potentially competitive new companies in their respective spaces. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 17. To view a full article or story, click on the link next to the headline.
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Hunan TV’s Online Video Platform Mango TV Lands 1 Bln Yuan Series A – Source (English article)
Tencent (HKEx: 700), Shanda Literature Units Join To Form Online Reading Group (Chinese article)
NZ’s Fonterra Buys Stake In China’s Beingmate (Shenzhen: 002570) For $553 Mln (English article)
Legend Group Plans July IPO, To Raise Up To $3 Bln – Report (Chinese article)
Consortium to Acquire Shanda Games (Nasdaq: GAME) Adds New Members (PRNewswire)
Bottom line: Chen Tianqiao’s sale of his Shanda Games stake marks his symbolic exit from online entertainment, and he will probably return to deal-making by setting up his own private equity firm.
Chen Tianqiao steps down from Shanda Games
The slow-motion breakup of the online entertainment empire of Shanda Interactive has taken a major step forward, with news that the company is selling its entire stake in its core online gaming unit. The news follows previous reports that Shanda Interactive had reached a deal to sell a controlling stake in its Cloudary online literature unit, and its sale earlier this year of a controlling stake in its struggling Ku6 Media (Nasdaq: KUTV) online video unit. All of this comes as Shanda Interactive’s chairman and founder Chen Tianqiao looks to disband his empire that was an early leader in online entertainment, but later languished as it was overtaken by rivals like NetEase (Nasdaq: NTES) and Tencent (HKEx: 700). Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 27. To view a full article or story, click on the link next to the headline.
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Wal-Mart (NYSE: WMT) Dismisses 30 China Executives In Restructuring (English article)
Shanda Interactive Sells Controlling Interest In Shanda Games (Nasdaq: GAME) (PRNewswire)
China Widens ‘Tax-Evasion’ Net Amid Microsoft (Nasdaq: MSFT) Case (English article)
Bottom line: Shanda is likely to sell a controlling stake of its Cloudary online literature unit to an outside buyer, possibly Tencent, as part of a drive to hand over management of its major units to strategic partners.
Shanda’s Cloudary in rumored sale
The slow-motion break-up of former online entertainment high-flyer Shanda Interactive is back in the headlines, with reports the company has sold its online literature unit to Internet heavyweight Tencent (HKEx: 700). This particular rumor looks logical enough for reasons I’ll give shortly. But I’ve heard so many rumors about sale of part of all of Shanda over the past year that I’ll only believe this latest report when we hear an official confirmation. What’s clear from these latest reports is that Shanda founder and chairman Chen Tianqiao continues to look for opportunities to sell part or all of his company, as he reportedly grows restless with his lackluster businesses whose growth has stalled. Read Full Post…
