Giant Interactive Group Inc.
) reached a 52-week high of $11.89 per share on Jun 27 since the
company announced to hold an extraordinary general meeting of
shareholders to consider and vote on the merger agreement of the
company with Giant Investment Limited and Giant Merger Limited, a
wholly-owned subsidiary of Giant Investment. Shares of Giant
Interactive eventually closed at $11.85 on Jun 27, with share
prices rising 5.9% year-to-date.
On Jun 16, the company announced that it will hold an
extraordinary general meeting of shareholders on Jul 14, to
consider the merger proposal of the company with Giant Investment
Limited and Giant Merger Limited, a wholly-owned subsidiary of
On Mar 17, the company confirmed its merger agreement, where
Giant Investment will acquire Giant Interactive for $12 per share
and $12 per American Depository Share (ADS), totaling $3 billion.
Following the merger, which is expected to close in the second half
of 2014, Giant Interactive will become a privately held company and
no longer trade on Nasdaq.
In Nov 2013, the company received a proposal from its chairman
Yuzhu Shi, who already owns 49.3% of the company, to purchase the
rest with cash and proceeds from debt financing for $2.82 billion
in cash. The company announced the formation of a special committee
of three members to evaluate the preliminary buyout offer. The
consortium proposed the acquisition of all of the company's shares,
including ADS for $11.75 per share/ADS. Each ADS represents one
ordinary share of the company. The committee assessed the offer and
negotiated terms to provide maximum value to its shareholders.
Giant Interactive is a leading online game developer and
operator in China in terms of market share and focuses on MMORPGs.
The company has been focusing on its mobile game strategy and is
keen on expanding the mobile game market in China. The company is
set to roll out its first self-developed mobile games in 2014. In
addition, it has 10 mobile game projects currently under
The company is optimistic about expanding its portfolio in 2014
and hopes to launch several new mobile games. The company has a
prudent expense management system and continues to explore other
cost effective distribution channels to enhance profitability.
Giant Interactive holds a Zacks Rank #4 (Sell).
Other Stocks to Consider
Investors interested in Internet retailers can consider stocks
China Distance Education Holdings Ltd.
). While Brightcove sports a Zacks Rank #1 (Strong Buy), China
Distance Education Holdings and Shutterfly hold a Zacks Rank #2
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