The Government of Singapore Investment Corp. (GIC), a sovereign wealth fund, has taken a sizable stake in Shanda Games, an online gaming spin-off of China's Shanda Interactive Entertainment.
GIC purchased nearly 4.5 million American Depository Shares (ADS) in Shanda Games, according to a regulatory filing submitted to the U.S. Securities and Exchange Commission. ADS represent shares in a foreign company and are traded like stocks. In the case of Shanda Games, each ADS is worth two ordinary shares in the company and trades on Nasdaq.
GIC's stake in Shanda Games represents 5.4 percent of the company's ordinary shares and is worth US$46.9 million given Wednesday's closing price of $10.48 per share.
Singapore's biggest sovereign wealth fund, GIC was set up to manage the country's foreign currency reserves and oversees more than $100 billion in assets.