China Mobile Games and Entertainment Group Limited (CMGE), the largest publisher and a leading developer of mobile games in China, today announced that its Board of Directors has received a preliminary non-binding proposal from Orient Hongtai Investment Management Co., Ltd., a subsidiary of Orient Securities Company Limited , to acquire all of the outstanding shares of the China Mobile Games. Orient Securities Co. values the mobile games publisher and developer at roughly $673.2 Million and issued a nonbinding proposal to acquire China Mobile Games for $1.5357 in cash per class A or class B ordinary share & mdash; or $21.50 per American depositary share (ADS), a 5.5% premium to Friday’s close. Each ADS represents 14 class A shares, according to a regulatory filing. China Mobile’s ADSs rose 4.5% to $21.30 in recent premarket trading.
Orient Investment also has indicated to China Mobile that it has secured financing from certain affiliates and co-investors of roughly 5 billion yuan ($810 million). China Mobile said its has retained Kirkland Ellis to act as its U.S. counsel and expects to engage a financial adviser to assist in its review and evaluation of the proposal. China Mobile cautions its shareholders and others considering trading its securities that the Board has just received the proposal letter and has not had an opportunity to carefully review and evaluate the proposal yet, nor has the Board made any decision with respect to the Company’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. CMGE does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
About CMGE
CMGE is the largest publisher and a leading developer of mobile games in China with integrated capabilities across the mobile game value chain. Its fully integrated capabilities include the development, licensing, publishing, distribution and operation of mobile games, primarily in China. Its social games are mainly developed for Android and iOS-based smartphones. CMGE’s extensive distribution network includes its proprietary Game Center application, handset pre-installations, application stores and web platforms and mobile network operators. The offices are in Guangzhou, Shenzhen, Beijing, Chengdu, Shanghai, Hong Kong, Tokyo, Taipei and Seoul. The Company’s stock is traded on NASDAQ under the symbol CMGE.
Source: http://www.cmge.com.
