Shanda Games Limited, a leading online game developer, operator and publisher in China, today announced that it has reached an agreement to acquire Eyedentity Games, a leading online game development studio in Korea, as part of the Company’s overall growth strategy in the global market.

Shanda Games press release stated the following:

The acquisition will combine Shanda Games’ online game platform with Eyedentity’s game development capabilities, to further expand Shanda Games’ leading global online game platform.

Transaction Highlights:

– Expands Shanda Games’ international presence with the addition of Eyedentity’s internationally licensed online game portfolio;

– Strengthens Shanda Games’ in-house online game development capabilities;

– Allows Shanda Games to fully capture the benefits of the successful launch of “Dragon Nest”;

– Reinforces Shanda Games’ leading position in the online game industry.

Mr. Alan Tan, Chairman and CEO of Shanda Games, commented, “We are very excited to be bringing together two of the best teams in the online game industry together. We began working with Eyedentity almost three years ago on ‘Dragon Nest’ and, as we got to know them, have been very impressed by the team’s creativity and its deep understanding of the gamer community. With Shanda Games’ expertise and experience in operating online games in China and Eyedentity’s game development capabilities, combined with our collective international businesses, this acquisition positions Shanda Games to become a leading global online game company.”

Mr. Chris Lee, founder and CEO of Eyedentity Games, commented, “We are delighted to become part of Shanda Games. Our focus is on creating interesting and fun online games, and Shanda Games has the resources to publish and operate, on a much larger scale, the games that we create. We are very pleased with how Shanda Games has launched and operated ‘Dragon Nest’ in China, and its success is a perfect example of what we can accomplish. As we combine our complimentary businesses, we look forward to similar successes.”

Based in Seoul, Korea and founded by experienced industry veterans, Eyedentity is a private developer of online games with over 100 game developers. Its online game “Dragon Nest”, based on an in-house 3D engine, has already been licensed to partners in Korea, Japan, China, Taiwan, Southeast Asia, and the U.S. to date and has since been successfully launched in Korea, Japan and China. It is among the top five massively multi-player online role-playing games (MMORPG) in Japan and one of the most successful new online games in China this year.

The transaction is valued at approximately USD 95m in cash. Shanda Games’ cash, cash equivalents, short-term investments, and restricted cash totaled USD 444m as of June 30, 2010.

The closing of the transaction is subject to standard closing conditions. The parties expect to close the transaction in the third quarter of 2010.

Source: Global Newswire

Medison, a privately-held company headquartered in Seoul, is currently the world’s fifth largest manufacturer and distributor of diagnostic ultrasound systems, with a global market share of 5.9%, and widely recognized as a technology and market leader.

However this success has not come without setbacks, as after attracting global attention in 1998 by developing the world’s first three-dimensional diagnostic ultrasound system, Medison expanded too quickly encountering financial problems which saw the company delisted from the stock exchange and enter court ordered restructuring in 2002.

During this period the company went back to its core strength of innovation, a trend that continues today with R&D spending up from KRW 9.7 billion in 2002 to KRW 24.2 billion last year.

In 2006, with sales revenue up 50% the company catapulted out of court receivership. By the end of 2010, the Company is anticipated to realize its breakthrough growth of more than 30.0% (vs. 11.6%, the anticipated growth for the Company’s direct peers) in 2010

Medison provides a full line-up of ultrasound imaging equipment for the obstetrics and gynecology (OB/GYN), and cardiovascular (CAD) fields. Major products include their flagship ‘Accuvix’ series of 3D/4D high performance ultrasounds, the design award winning ‘MySono U5′ portable ultrasound, along with the ‘SonoAce’ line of color doppler ultrasound systems.

These leading technology products are distributed in more than 110 countries through the company’s network of 12 overseas subsidiaries, one branch office and joint venture respectively, and 110 exclusive dealers.

As a result, over three quarters of annual sales comes from exports, with sales split between Asia (38%), Europe (32%) and the America’s (23%).

On December 29, 2009, Medison topped off a pretty impressive year for the Korean ultrasound company by winning the CEO Prize at the 2009 National Competitiveness Awards, to go with earlier product design awards for their portable ultrasound system, and their fourth consecutive Management Innovation Award at the Korea Service Awards.

Set to continue its momentum in the near future Medison’s goal is to record USD 500 million in sales, and an operating profit increase of 30 percent by 2012, in the process advancing to first place in OB/GYN application and the mid-end grade market.

To achieve their goals Medison welcomes approaches from both financial and strategic investors. The Company invites financial investors, who can provide the necessary funding to help Medison expand production and R&D facilities, and for new business investment.

Additionally, the Company is open to receiving inquiries from strategic investors or partners relating to new business or market development.

For more information about this event, or about Medison, or in regards to other investment opportunities in Korean SMEs please contact the Finance Industry Investment Promotion Team, on +82-3460-7536, or at investment@kotra.or.kr.

See here for more profiles of Korean companies.

The report cited industry sources as saying that KDB has changed its plan to buy stakes held by financial investors only.

It had earlier been reported that KDB would buy a 45% stake in Daewoo E&C, from an initially planned 50%.

Meanwhile, KDB denied rumours that it had been seeking to sell the stake in Daewoo E&C to an Indonesian company. According to an item in Money Today, a senior official at the state-run bank told that the rumour was groundless. Earlier yesterday, 7 September, an online report in Korea Economic Daily claimed that KDB had discussed selling the stake, with an Indonesian conglomerate, and may agree to sell the holding in Daewoo to the group.

Source: Korea Economic Daily (translated)

The news report cited industry sources as saying that the company has already sent teaser letters to potential buyers to weigh their interest in the possible sale.

According to the report, the objective is to sell the existing 100% stake in Eduwang; the asking price is KRW 25bn (USD 21m).

Park Myung-jeon, the largest shareholder and his family own 100% stake in the company, it noted.

Eduwang recorded annual revenue and operating profit of KRW 23bn (USD 20m) and KRW 3.6bn respectively. However, its debt stands at  KRW 27bn (USD 23m), the report said.

Source: Money Today (translated)

The report cited an unnamed insider at Busan Mutual Savings Bank as saying that it has mandated KTB Asset Management as a financial advisor for the sale of Jeonju Savings Bank and Jungang Busan Mutual Savings Bank.

Jeonju Savings Bank, an unlisted regional bank based in the city of Jeonju, has a total asset of KRW 438bn (USD 371.7m).

It was earlier reported that Busan Mutual Savings Bank would place Jungang Busan Mutual Savings Bank, the unlisted South Korean bank, up for sale.

Source: Asia Economy (translated)

According to the report, which did not cite sources, ANZ is believed to be in the last stages of due diligence on the AUD 4.7bn (USD 4.3bn) stake and is likely to announce a result later this month. ANZ may also buy a 6% stake in KEB, which is being sold by Korea Exim Bank, the report said.

The report said that ANZ’s due diligence on KEB would likely help the company evaluate its Asian strategy.

Also reporting on the story, the Korea Herald stated -

The Australia and New Zealand Banking Group is sending a team of inspectors to the Korea Exchange Bank as early as next week, proceeding with its bid to take over Korea’s fifth-largest lender.

Industry sources confirmed Tuesday that the ANZ will analyze the Korean lender headquartered in Seoul, which would be the first on-site evaluation of the company up for sale since 2006.

“Korea is one of the leading-value added manufacturing and export-driven economies in Asia, it has rapidly growing trade ties to the region … and it is now Australia’s third-largest trading partner. This opportunity specifically leverages Korea’s connectivity with the rest of Asia and KEB‘s leading position in foreignexchange and in trade finance,” ANZ chief Mike Smith said as he announced the bank’s third quarter results.

“Some people have questioned whether this (acquisition of KEB) fits our super-regional strategy, and I think it unquestionably does,” Smith said.

“ANZ’s firm stance on the acquisition of KEB came after a long pause and the deal is expected to proceed quickly when the Australian team visits Seoul,” Seo Young-soo, a Kiwoom analyst said.

“ANZ was hesitant about the deal not because it was unsure about the value of the KEB, but because of the uncertainties in the global financial industry. Their (ANZ) proclaim of the deal most likely means that they’re ready (for the purchase),” he added.

ANZ is expected to decide by mid-October whether to bid for a majority in the KEB, worth about $4 billion, according to Reuters.

An ANZ spokesman declined to comment.

See here for more stories on Lone Star’s sale of its stake in KEB.

Sources: Australian Financial Review, Korea Herald

In a reply to a South Korean stock exchange request to clarify a news report that it may be acquiring Daehan Shipbuilding, STX said it had been considering buying a stake in Daehan but called off the plan.

As reported earlier, South Korean state-run Korea Development Bank placed Daehan Shipbuilding, whose total assets as of last year stood at KRW 514bn (USD 446m), up for sale and STX Group had entered into acquisition talks.

Source: Maeil Business (translated)

Lone Star may turn its attention to local financial companies for sale talks if the ongoing talks with ANZ are not successful, according to the report citing an unidentified source.

South Korean investment firm MBK Partners is preparing to form a bidder consortium, the report added citing the source.

As reported, Australia-based bank ANZ is carrying out due diligence on Korea Exchange Bank in relation to the potential sale of a 51% stake held by Lone Star.

Source: E-Today (translated)

Daewoo E&C is the listed South Korean construction company, in which, KDB is in a process of acquiring a 50% stake, plus, one share, from Kumho Asiana and its financial investors.

The report cited an unspecified source from KDB as saying that the state-run bank has briefed the acquisition plan to a South Korean financial regulator.

According to the report, KDB is seeking to receive approval from the regulator to extend its maximum limit under which it is allowed to invest in financial firms, in order to proceed with the acquisition.

The source was cited as saying that KDB is expected to finish the deal around early November, if all the remaining procedure goes smoothly.

As reported earlier, the deal is reported to be valued at KRW 2.9tn (USD2.41bn).

Source: Edaily (translated)

The report cited an unspecified insider at KAMCO as saying the company is planning to start a review to sell the stake after the second half of this year.

The insider was cited as saying that he expects KAMCO could place the stake up for sale in 1H11 at the earliest or 1H12 at the latest.

KAMCO holds a 50.07% stake in Ssangyong Engineering, the listed South Korean construction company.

Source: E-Today (translated)