Shanda to Purchase Majority Stake In Hurray!
June 08 2009 - 11:18AM
PR Newswire (US)
SHANGHAI, June 8 /PRNewswire-Asia/ -- Shanda Interactive
Entertainment Limited (or Shanda) (NASDAQ:SNDA), a leading
interactive entertainment media company in China, and Hurray!
Holding Co., Ltd. (or Hurray!) (NASDAQ:HRAY), a leader in artist
development, music production and wireless music distribution and
other wireless value-added services in China, today announced that
they have entered into a definitive agreement under which Shanda,
through a wholly-owned subsidiary, will commence a tender offer to
acquire 51% of the total outstanding ordinary shares of Hurray! on
a fully diluted basis (including shares represented by the American
Depositary Shares of Hurray! ("ADSs")) at a price of US$0.04 per
ordinary share (or US$4.00 per ADS). (Logo:
http://www.newscom.com/cgi-bin/prnh/20050314/CNM005LOGO ) The offer
price represents an approximately 25% premium over Hurray!'s
closing price on NASDAQ on June 5, 2009. The total transaction
value is approximately US$46.2 million. Completion of the tender
offer will be subject to the condition that at least 51% of
Hurray!'s outstanding shares, on a fully diluted basis, are
tendered in the offer and other customary conditions. If more than
51% of the outstanding shares of Hurray! are tendered in the offer,
then the number of shares Shanda will purchase from each tendering
shareholder will be reduced on a pro rata basis. The transaction is
not subject to any financing conditions. The Board of Directors of
Hurray! has unanimously recommended the offer to Hurray!'s
shareholders. Hurray!, a NASDAQ-listed company, is a leader in
artist development, music production and offline distribution and
also organizes concerts and other music events in China through its
affiliated music companies. Hurray! is also a leading online
distributor of music and music-related products such as ringtones,
ringbacktones, and truetones and other types of wireless
value-added services to mobile phone users in China. Mr. Tianqiao
Chen, Chairman of the Board of Shanda said, "We respect the work by
Hurray!'s board and management and their efforts in defining
Hurray!'s strategies and direction and believe that Shanda's user
base, resources and platform will facilitate the continued
execution of these strategies." Mr. Qindai Wang, Chairman of the
Board of Hurray! said, "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." About Shanda Interactive Entertainment Limited
Shanda Interactive Entertainment Limited (NASDAQ:SNDA) is a leading
interactive entertainment media company in China. Shanda offers a
portfolio of diversified entertainment content including some of
the most popular massively multi-player online role-playing games
(MMORPGs) and casual online games in China, as well as online chess
and board games, network PC games and a variety of cartoons,
literature works and music. Shanda's interactive entertainment
platform attracts a large and loyal user base. Each user can
interact with thousands of other users and enjoy the interactive
entertainment content that Shanda provides. Interaction enriches
your life. For more information about Shanda, please visit
http://www.snda.com/ . For more information on Shanda, please
contact Maggie Yun Zhou, IR manager, Vivian Chen, IR manager,
Phone: +86-21-5050-4740 (Shanghai), Email: . Additional information
is available at http://www.snda.com/ . About Hurray! Holding Co.,
Ltd. Hurray! Holding Co., Ltd. (NASDAQ:HRAY) is a leader in artist
development, music production and offline distribution in China
through its record labels Huayi Brothers Music, Freeland Music, New
Run Entertainment, Secular Bird and Seed Music Group. The Company,
through Fly Songs, also organizes concerts and other music events
in China. Hurray is also a leading online distributor of music and
music-related products such as ringtones, ringbacktones, and
truetones to mobile users in China through the full range of
wireless value-added services platforms over mobile networks and
through the internet. Hurray also provides a wide range of other
wireless value-added services to mobile users in China, including
games, pictures and animation, community, and other media and
entertainment services. For more information on Hurray, please
contact Christina Low, Investor Relations Officer, Phone:
+86-10-8455-5532 (Beijing), Email: . Additional information is
available at http://www.hurray.com.cn/ . NOTICE TO SHAREHOLDERS:
The tender offer described in this announcement has not yet
commenced. This announcement is for informational purposes only and
does not constitute an offer to purchase or a solicitation of an
offer to sell Hurray!'s shares. The tender offer will be made
pursuant to a tender offer statement on Schedule TO (including the
offer to purchase, letter of transmittal and other related tender
offer materials) that will be filed by Shanda with the Securities
and Exchange Commission (SEC). In addition, Hurray! will file a
related solicitation/recommendation statement on Schedule 14D-9
with the SEC. These materials (when available), and as amended from
time to time, will contain important information, including the
terms and conditions of the offer, that should be read carefully
before any decision is made with respect to the tender offer.
Investors and stockholders can obtain a free copy of these
materials (when available) and other documents filed by Shanda and
Hurray! with the SEC at the website maintained by the SEC at
http://www.sec.gov/ . This announcement contains forward-looking
statements. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Statements in this announcement that are not historical
facts, including but not limited to statements regarding the
purposes of the tender offer and Shanda's ability to commence and
complete the tender offer, and potential synergies which may arise
if the tender offer is successfully consummated represent only the
current expectations, assumptions, estimates and projections of
Shanda and Hurray! and are forward-looking statements. These
forward-looking statements involve various risks and uncertainties.
Important risks and uncertainties that could cause the actual
results to be materially different from expectations include but
are not limited to Shanda's and Hurray!'s ability to commence and
complete the tender offer and the risks set forth in Shanda's and
Hurray!'s filings with the U.S. Securities and Exchange Commission,
including Shanda's and Hurray!'s annual reports on Form 20-F.
Shanda and Hurray! do not undertake any obligation to update any
forward-looking statement, except as required under applicable law.
http://www.newscom.com/cgi-bin/prnh/20050314/CNM005LOGO DATASOURCE:
Hurray! Holding Co., Ltd. CONTACT: About Hurray! Holding Co., Ltd.,
Christina Low, Investor Relations Officer, Phone: +86-10-8455-5532
(Beijing), Email: Web site: http://www.hurray.com.cn/
http://www.snda.com/
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