Oppenheimer Moves Shanda Interactive to Not Rated
Oppenheimer has moved Shanda Interactive (NASDAQ: SNDA) to Not Rated after the company announced its Chairman and CEO, Tianqiao Chen, issued a non-binding proposal to take the company private.
In the report, Oppenheimer writes, "SNDA announced today that it has received a non-binding proposal from its Chairman and CEO, Tianqiao Chen to take the company private at $41.35 per share. Mr. Chen and his affiliates control ~68.4% of the shares outstanding. We estimate ~$755M (or <$150M net of cash) is needed to finance the deal. Given the high quality of SNDA's assets and the relatively small amount of net cash needed for the transaction ($100-150M), we believe that chances of securing financing are high. However, considering the value of its assets and a relatively small takeout premium of 23.5% to the closing price last Friday, shareholders may demand a higher takeout price."
Shanda Interactive closed yesterday at $38.33.
