KongZhong Corporation (NASDAQ: KZ) said its board of directors has approved the sale of a portion of its shareholding in Ourgame International Holdings Limited (6899.HK) to Glassy Mind Holdings Limited.
The company agreed to sell 39.2 million shares in Ourgame to Glassy Mind Holdings Limited at a price of HKUSD6.1062 per share, for a total consideration of approximately HKUSD239.36 million (USD30.9 million), with roughly 80 percent of the total consideration to be paid in cash immediately upon the completion of the sale and the remaining consideration to be paid in cash on 30 September 2016 (the Transaction).
The completion of the Transaction is subject to a number of conditions precedent, including the obtaining of a ruling from the Securities and Futures Commission of Hong Kong in connection with the Transaction.
The company first acquired Ourgame´s shares in January 2014 prior to Ourgame´s initial public offering and listing on The Stock Exchange of Hong Kong Limited in June 2014.
Upon closing of the Transaction, the company will continue to hold approximately 20.74 million shares in Ourgame, representing approximately 2.6 percent of the total issued and outstanding ordinary shares of Ourgame as of the date of this press release.
KongZhong is a leading online game developer and operator in China. It entered the smartphone game industry in 2011 through an acquisition of smartphone game engine and has expanded its mobile game development team across four cities across Mainland China.