Giant Interactive Group Inc.
), announced that approximately 99.6% shareholders are in favor of
the company's merger agreement with Giant Investment Limited and
Giant Merger Limited, a wholly owned subsidiary of Giant
The voting was done at an extraordinary general meeting of
shareholders held on Jun 16, where approximately 80% of Giant's
entitled shareholders voted in person or by proxy.
The merger agreement was confirmed in Mar 2014, which was later
amended in May 2014. Under the agreement, Giant Investment will
acquire Giant Interactive for $12 per share and $12 per American
Depositary Share (ADS), totaling $3 billion. Each ADS represents
one ordinary share of the company.
The merger is expected to be completed by the end of July.
Following the merger, Giant Interactive will become a privately
held company and no longer trade on Nasdaq.
The merger was announced last year in November, when the company
received a buyout proposal from its chairman Yuzhu Shi, who owns
49.3% of the company. The consortium proposed the acquisition of
all the company shares, including ADS for $11.75 per share/ADS.
On May 27, 2014, Giant Interactive reported first quarter fiscal
2014 adjusted earnings of 22 cents (on a local currency basis).
Earnings were almost flat year over year, owing to weak sales.
Earnings, however, lagged the Zacks Consensus Estimate of 25 cents
by 12%. Giant Interactive holds a Zacks Rank #4 (Sell).
Some better-ranked Internet retailers worth considering include
China Distance Education Holdings Ltd.
While China Distance sports a Zacks Rank #1 (Strong Buy), Yelp and
Shutterfly have a Zacks Rank #2 (Buy).
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