Shanda Interactive approves management buyout

Shanda Interactive Entertainment (SNDA.NASDAQ) has approved a management buyout offer that values the internet and online game company at roughly US$2.3 billion, The Wall Street Journal reported. Company CEO and Chairman Chen Tianqiao was joined by his wife, Luo Qianqian, an independent director, and brother Chen Danian, the company’s chief operating officer, in making the bid for the 30.3% of the company’s shares they do not already own. The consortium offered US$41.35 per American depository share, a 24% premium to the share price in mid-October when their bid was first made public. The deal will be financed with debt and is expected to close by the end of the first quarter, subject to shareholder approval. The company’s shares closed at US$39.39 on Monday, up 25% from the previous quarter.