Shanda's tender offer for Hurray! shares, ADSs to result in 51% stake

By Lisa Kerner

Charlotte, N.C., June 8 - Shanda Interactive Entertainment Ltd. agreed to acquire a majority interest in Hurray! Holding Co., Ltd. in a transaction valued at approximately $46.2 million, the companies announced on Monday.

According to Shanda, it will begin a tender offer to acquire 51% of the total outstanding ordinary shares of Hurray!, including shares represented by American Depositary Shares, for $0.04 per ordinary share or $4.00 per ADS.

The offer is conditioned on at least 51% of Hurray!'s outstanding shares being tendered in the offer and will be prorated if oversubscribed. There are no financing conditions to the offer.

Hurray!'s board has unanimously recommended that its shareholders accept the offer.

"We believe that Hurray! and Shanda share a common vision to be leaders in digital entertainment in which the complementary content, distribution platforms and large user base will present both companies with opportunities to achieve synergies going forward," Hurray! chairman Qindai Wang said in a news release.

Shanda is a Shanghai-based interactive entertainment media company.

Hurray!, based in Beijing, provides wireless value-added services to mobile phone users in the People's Republic of China.

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