Indirectly holding 91% equity of Shanda Games, Century Huatong is expected to become the "King of Games" of A-shares

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The announcement stated that on June 12, Century Huatong received the "Notice on Completing the Acquisition of Partial Equity of Shanda Games Company" from its controlling shareholder and major shareholder. Century Huatong's major shareholder acquired a 91% stake in Shanda Games and is expected to become the A-share "Game King". On the evening of June 13, Century Huatong issued an announcement stating that the company's controlling shareholder and major shareholder have completed their shareholding in Shanda Games, and currently the total is indirectly held 90.92% of Shanda Games.

Century Huatong completes the acquisition of Shanda games, which is conducive to the integration of resources. driven by capital, businesses such as Shanda Games and Dot interaction are expected to strengthen the global operation of the game business and promote the growth of market revenue.

original title: 91% of Shanda Game acquired by Century Huatong shareholders is expected to become A-share "Game King"

A-share "Game King" will be born?

on the evening of June 13, Century Huatong announced that the company's controlling shareholders and major shareholders have completed the increase of their shares in Shanda Games, and now indirectly hold a total of 90.92% of Shanda Games.

announcement shows that in the coming year, Century Huatong can acquire the shares held by major shareholders in Shanda Games in an appropriate way.

Shanda Game is expected to return to A shares within a year

announcement that on June 12, Century Huatong received a "notice letter on the completion of part of the equity acquisition of Shanda Game Company" from controlling shareholders and major shareholders.

East Zhejiang Huatong holding Group Co., Ltd., the controlling shareholder of Century Huatong, and Shao Heng, the second largest shareholder, and the Shanghai Yao Yu Investment Partnership controlled by the third largest shareholder, have recently acquired a total of 47.92% of the shares held by five limited partnerships, including Ningxia Zhongrong Shengda Equity Investment Partnership and Ningxia Zhongrong Culture Industry Equity Investment Enterprise. However, the announcement did not disclose the transaction price.

in June 2015, Huatong Holdings, Shao Heng and Wang Meng acquired and indirectly held a 43% stake in Shanda through the establishment of a limited partnership.

at present, the three major shareholders have indirectly held 90.92% of Shanda Game, making it the largest shareholder of Shanda Game. The

announcement also said that in the coming year, Century Huatong will, under appropriate conditions, integrate with Observatory or its assets through the necessary procedures, including the transfer of the interests of Shanda Games indirectly held by controlling shareholders and major shareholders to Century Huatong. If Century Huatong does not exercise the priority transfer right, both the controlling shareholder and the major shareholder shall have the right to transfer their Shanda shares to an unrelated third party in order to resolve the inter-industry competition after the completion of the transaction. If the reorganization is completed, Century Huatong is expected to become the largest game company in the A-share market.

data show that Shanda game, which was once listed on NASDAQ in the United States, was privatized and delisted at the end of 2015, and successively launched more than 70 heavyweight online games, such as "Blood Legend", "Legend World", "Bubble House", "Dragon Valley" and "final Fantasy 14". However, with the rapid rise of Tencent and NetEase game business in recent years, Shanda Games, the former leader of China's game industry, has retreated to the second echelon.

Century Huatong Dong Mi Yan Zhengshan told reporters on June 14: "Shanda is a very good brand of domestic games, including its profitability, platform and brand, which will be of great help to the development of the game industry of listed companies in the future. The integration and collaborative development of the original game business will play a positive role. "

"in the announcement of the first phase of the acquisition in 2015, listed companies still hope to receive Shanda games here, subject to various policies, profitability and other conditions. Major shareholders and controlling shareholders have also made a commitment to transfer these assets to listed companies. " Yan Zhengshan said.

Song Pengzhan, founder and CEO of Game Daily, believes that if there are no major mistakes, it is only a matter of time for Shanda games, which have straightened out business and equity issues, to return to the A-share market.

Gama data founder and CEO Teng Hua said to reporters, "this Century Huatong completes the acquisition of Shanda games, which is conducive to the integration of resources. Driven by capital, business cooperation such as Shanda Games and Diandian interaction is expected to strengthen the global operation of the game business and promote the growth of market revenue."

continuous plus game investment

data show that Century Huatong is mainly engaged in the manufacture, processing and sales of auto parts, motorcycle parts and precision metal moulds.

in September 2014, Century Huatong conducted a major asset restructuring, successfully acquiring 100% equity interest in Shanghai Tianyou Software Co., Ltd. and 100% equity stake in Wuxi Qiku Network Technology Co., Ltd. at a price of 950 million yuan and 850 million yuan, respectively. Both companies exceeded their bet performance in 2014 and 2015.

as a result, Century Huatong's main business has changed from the original auto parts to the dual main business of auto parts and Internet games.

according to the data released by Huatong in the previous century, Shanda's unaudited revenue in 2016 was 3.86 billion yuan and net profit was 1.62 billion yuan. The net revenue growth rate was 17.6%, and the net profit increased by 113%.

in addition, in February this year, Century Huatong announced that the company's plan to spend 6.94 billion yuan to acquire game company Interactive and Cayman has been approved by the CSRC, but the overseas investment matters involved need to be approved by the National Development and Reform Commission and the commerce department.

Century Huatong's 2016 annual report shows that the company's operating income in 2016 was 3.456 billion yuan, an increase of 14.21% over the previous year, of which game operation and game development revenue accounted for 22.84% and 4.25%, respectively. The net profit was 503 million yuan, up 23.44% from the same period last year, of which the game sector accounted for more than 70%.

Yan Zhengshan said: "there was a net profit of more than 400 million yuan in 2016, which contributed a lot. However, we will still develop according to the dual main business mentioned at the time of the acquisition, and this will not change. The game is of course a focus of the company's development, but auto parts will also develop and will not give up. "

Zhao Minkang, editor-in-chief of Suotuo.com Game Division, believes that Century Huatong began to make acquisitions for Shanda several years ago, first, because several old IPs of Shanda in recent years continue to contribute income, on the other hand, it is beneficial to Century Huatong's own stock. Because the domestic stock market is different from American stocks, they are more optimistic about game concept stocks.

"Cross-border mergers and acquisitions are just for business transformation and financial performance, and the latter is a little more, because games are indeed more profitable," says Xue Yongfeng, an analyst at Analysys think tank. China's game industry is now a stable period, the flashpoint has passed, and now is a period to maintain a normal state. At present, mergers and acquisitions of game assets have also cooled down, because there are not many games that can be acquired now.

Edit: jessica