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POS Terminal Manufacturer Xinguodu to Acquire Gaming Firm Fantexi

Shenzhen Stock Exchange, 2/21/14

Shenzhen-based POS terminal manufacturer and e-payment solutions provider Xinguodu (300130.SZ) has announced the acquisition of a 100% stake in Shenzhen-based online game developer and operator Fantexi for a combined RMB 840 mln in cash and stock.

Fantexi operates a variety of self-developed online sports games, such as browser-based basketball games Lanqiu Jingli, Basketball Tycoon, and Meng Zhi Dui . As of October 31, 2013, the three aforementioned games boasted a combined user base of 37.33 mln, with RMB 468 mln in combined revenue.

Xinguodu will issue approximately 37.74 mln shares, valued at RMB 560 mln, to Fantexi, while the remaining RMB 280 mln will be paid in cash. Xinguodu will sell 18.87 mln shares to company chairman Liu Xiang and major shareholders Liu Ya and Jiang Han to fund the transaction.

Fantexi has guaranteed that, from 2014 to 2016, the company net profit will reach RMB 79 mln, RMB 100 mln, and RMB 113 mln, respectively.

Keywords: Xinguodu 300130.SZ Liu Ya Jiang Han Meng Zhi Dui Lanqiu Jingli Basketball Tycoon revenue Internet browser profit e-payment POS Liu Xiang Fantexi online gaming users M&A browser game

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