Gaming Firm Giant to Backdoor List through New Century Cruise
New Century Cruise, 10/31/15
Chongqing-based cruise ships and travel agency operator New Century Cruise (002558.SZ) recently announced plans to spend RMB 13.1 bln to acquire 100% of equity shares of online game developer and operator Giant Interactive Group. After this transaction, New Century Cruise's main business line will change from inland luxury cruise ship operations and tourism services catering to foreign tourists, to a comprehensive Internet enterprise focused on online gaming. This merger will accomplish an A-share market listing for Giant Interactive. Giant's founder Shi Yuzhu is currently Giant Interactive's controlling shareholder.
To achieve this transaction, New Century Cruise plans to sell all of its assets and liabilities to its controlling shareholder Peng Jianhu or to designated third parties. At the same time, New Century Cruise will issue 443 mln new shares to Giant Interactive's stockholders in a non-public issue, priced at RMB 29.48 per share, or approximately RMB 13.1 bln in total, in exchange for 100% of Giant Interactive equity shares. In addition, the listed company will use a private issue of shares to up to 10 qualified investors to raise additional funds of up to RMB 5 bln. Of these additional funds, RMB 2.2 bln will be used to develop, represent, and operate new online games, and RMB 1.46 bln will be used to build an online entertainment and e-sports community. The remainder will be used to build a large data center and platforms for online game distribution and overseas game release and operations.
Editor's Note: For more information on this topic, please see "Chinese Travel Agency Considers Acquiring Gaming Firm Giant Interactive," MD 10/09/15 issue.
Keywords: backdoor listing Giant Interactive online gaming Shi Yuzhu Internet New Century Cruise 002558.SZ e-sports M&A
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