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Giant Interactive Chairman Makes $2.8B Buyout Bid

The company says it is reviewing the proposal


video games
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Shares of Giant Interactive Group (GA) surged more than 12% in Monday morning trading after the company received a takeover bid.

On Monday, the Chinese video gaming maker said that an investment groups led by its Chairman had made a non-binding, initial cash offer of $11.75 a share to buy the company. Members of the investment group, headed by Yuzhu Shi, currently own 47.2% of GA share capital on an enlarged basis.

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The offer represents a premium of about 21% over the Friday’s closing price of GA stock and would value the deal at about $2.8 billion.

GA noted that the offer was preliminary and that the investment group was willing to negotiate. The offer will be reviewed by the GA board, excluding the chairman. No decision has yet been made regarding the bid, or other alternative strategies.

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