B-Ray Media to Acquire 70% of Gamegoo
Securities Times, 10/25/12
Chengdu-based B-Ray Media Corporation (600880.SH) announced in a public filing today that it will issue 120 mln non-public shares, at a price of no less than RMB 9.09 per share, to raise a total (less issuance fees) of RMB 1.03 bln in funds in order to acquire a 70% share of Beijing-based online and browser game developer Gamegoo Information Technology (Manyougu).
Gamegoo's corporate shareholder, Shenzhen-based Shiji Kaixuan Technology, holds a 65.79% share of the company, according to the filing. The legal representative and founder of Shiji Kaixuan is Tencent (0700.HK) chairman and CEO Pony Ma.
B-Ray has reached an agreement with Gamegoo shareholders Shiji Kaixuan, Zhang Fumao, Ji Kai, Ruan Mei, Wang Jiamu, and Huang Mingming to acquire 70% of Gamegoo for a total of RMB 1.036 bln. As of August 31, 2012, Gamegoo had net assets listed at RMB 2.03 bln.
The stock purchase agreement between B-Ray and Gamegoo stipulates that if Gamegoo should have non-negative net profits by 2014, B-Ray will acquire the remaining 30% of Gamegoo for a price of up to RMB 432 mln. Until this point, Gamegoo's existing shareholders will continue to control the remaining 30%. Zhang Fumao, Ji Kai, Ruan Mei, and Wang Jiamu constitute Gamegoo's management team.
Editor's Note: According to a Tencent filing, Tencent sold its entire 65.8% stake in Gamegoo. The transaction was completed in October 2013.
Keywords: Ji Kai Ruan Mei Wang Jiamu browser game Pony Ma Internet Shiji Kaixuan B-Ray Media 600880.SH Gamegoo Zhang Fumao Huang Mingming M&A online gaming
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