ZHEJIANG Daily Media Group surged the daily limit of 10 percent after it resumed trading following the announcement of its takeover of two online gaming platforms.

The Shanghai-listed media group surged to 18.14 yuan (US$2.9) in the morning session on the first trading day after it was suspended from trading on March 6.

The company said in a filing to Shanghai Stock Exchange yesterday that it will use capital raised from private placement or other financing channels to acquire Hangzhou Bianfeng Network Technology and Shanghai Haofang.

It will raise as much as 2.5 billion yuan for the takeover.

Both companies are subsidiaries of Shanghai-based Shanda Interactive, which was delisted from NASDAQ earlier this year.

Industry watchers pointed out that the takeover plan will help the media group diversify its revenue streams, while for Shanda Interactive it will put more focus on profitable large scale role-playing games.

Zhejiang Daily Media Group reported 216.7 million yuan in profit last year, a 19 percent rise from a year before.

Source:shanghaidaily