Giant Investment consortium $4.4 billion acquisition of Playtika

Overview:

• A Chinese consortium of leading private equity firms and Shanghai Giant Network Technology (Giant) has recently announced an agreement between the consortium and Ceasars Interactive Entertainment (CIE) to acquire the latter's Playtika for $4.4 billion in cash.
• The Chinese consortium includes: Giant Investment, Yunfeng Capital, China Oceanwide, China Minsheng Trust, CDH China HF, and Hony Capital Fund.
• Based in Israel, Playtika is CIE's social and mobile games business.
• The deal is subject to customary regulatory approvals and other closing conditions.
• It is expected to close in the latter half of 2016.
• CIE is owned by Ceasars Acquisition (CAC) and Ceasars Entertainment who are looking for cash as they are in the process of a merger.
• Ceasars Entertainment's main operating unit, Ceasars Entertainment Operating, is undergoing an $18 billion bankruptcy and is seeking creditor approval for a restructuring plan. The sale of Playtika is seen to help the bankruptcy estate.
• Raine Group is CIE's financial advisor.
• Code Advisors is Giant's financial advisor.
• Fenwick & West (Mark Stevens, David Michaels, Ken Myers, Stephen Gillespie, James Li, Elizabeth Chang, Niping Wu, Sawyer Li) is advising Giant. 
• Latham & Watkins is advising CIE.

Wai Yee Tsang - Journalist - Asia-Pacific