The sponsor-led leveraged buyout (LBO) of Giant Interactive
highlighted banks’ increasing comfort with
borrowers’ underlying credit.
It’s the latest in a growing list of
US-listed Chinese take-privates to set a precedent for Asian
acquisition finance. The likes of China Fire and Security, AsiaInfo-Linkage and especially Focus Media – the largest-ever US-listed
ChinaCo to go private – have set precedents for
The $3 billion take-private of massive multiplayer
online game (MMOG) developer Giant Interactive by Baring Private Equity Asia and Hony Capital
follows Focus Media in terms of size, profile and the mix of
But as an online games company,
Linklaters’ David Irvine, who acted for the banks
on the financing, said this latest deal involved a different
and more challenging credit story.
"The online games sector is...