Bloomberg 8 July 2013
Goldman Sachs Group Inc. (GS) and Temasek Holdings Pte agreed to buy a minority stake in China’s Cloudary Corp. at a 25 percent lower valuation than in a previous funding round, said two people with knowledge of the matter.
The private placement values the operator of literary websites at about $600 million, less than an earlier valuation of $800 million, the people said, asking not to be identified because the information is private. Cloudary is controlled by Shanda Interactive Entertainment Ltd.
Cloudary, which filed for a U.S. initial public offering more than two years ago, has yet to start the share sale. A gauge of Chinese stocks listed in the U.S. last month traded at the widest discount since 2008 to the Nasdaq Composite Index as measured by price-to-earnings ratios, data compiled by Bloomberg show.
Equity funds managed by Orbis bought 1.875 percent of Cloudary in May 2012 for $15 million, according to a filing with the Securities and Exchange Commission last year. The deal valued the company at $800 million.