Chongqing New Century Cruise Co., Ltd. (002558.SZ) announced late Tuesday that it plans to buy up the entire Giant Interactive Group Inc. via private placement. The Shenzhen-listed cruise company will issue 443 million shares at a price of 29.58 yuan per share to all shareholders of Giant Interactive, a leading online gaming company in China. After the deal is made,
Giant Interactive's actual controller Shi Yuzhu will actually control the listed company and the gaming company will succeed in backdoor listing on domestic A-stock market. Chongqing New Century Cruise will raise no more than five billion yuan through the transaction, of which the consideration is set at 13.09 billion yuan temporarily.
The raised fund will be invested in online game development, operation and publication, online entertainment, and e-sport business. Giant Interactive, listed on New York Stock Exchange in November 2007, completed privatization and bow out of the exchange in July 2014, making itself the first China stock to get delisted from the US stock market. Chongqing New Century Cruise will resume trading on Shenzhen stock exchange Wednesday.
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