Chinese online game developer and operator Perfect World (NASDAQ: PWRD) announced that it has entered into a share purchase agreement with Chinese MMO rival Shanda Games (NASDAQ: GAME) to acquire overall 30 million class A ordinary shares in the latter with $100 million cash from Shanda Interactive Entertainment Limited, the controlling shareholder of Shanda Games. The purchase is expected to finalize in 30 days.

In addition, Perfect World also joined the consortium intended for Shanda Games’ privatization drive. The consortium has submitted a preliminary non-binding proposal letter dated January 27, 2014 to the board of directors of Shanda Games at a proposed price of $3.45 per class A or class B ordinary share, or US$6.90 per ADS at a market valuation of $1.9 billion.

Perfect World will take a 5.6% stake in Shanda Game based on its currently valuation of $1.81 million. Both of the parties noted that the investment dose not indicate any cooperation in gaming business operations.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.