A Chinese investment bank has launched a takeover bid for China’s biggest game developer and publisher, which also owns the intellectual property rights to gaming classics like "Dragon Ball" and "Naruto."

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China Mobile Games and Entertainment Group Ltd. said May 18 that it received a preliminary non-binding offer from Orient Securities Company Ltd.’s Orient Hongtai (Beijing) Investment Management Co. Ltd.

The investment bank offered to buy all of CMGE’s outstanding shares at $1.5357 in cash per Class A or Class B ordinary share, or $21.5 in cash per American depositary shares.

Orient Hongtai said it intends to fund the acquisition through equity capital by its parent, affilaites and co-investors. It also offered a 300 million Chinese yuan escrow as its reverse termination fee, signifying its “confidence and decisiveness” in the takeover offer.

According to its non-binding commitment offer, Orient Hongtai is the manager of two private equity funds that have over 3 billion yuan in managed assets.

CMGE’s U.S. counsel is Kirkland & Ellis and a financial advisor will be selected soon; while Wilson Sonsini Goodrich & Rosati, P.C. will advise Orient Hongtai on the deal.

CMGE, in its news release, did not state its stance on the offer.

The mainland Chinese game developer and publisher said that as of Dec. 31, 2014, it has 83 social games, 430 game bundles and 238 single-player games. In its latest annual report, CMGE said that it will launch 33 social games and 12 single-player games.

Some of CMGE’s famous games in 2015 include social card games Joyful Da Ying Jia and San Guo Weili Jiaqiang Ban; social RPG game "Jue Zhan Sha Cheng"; and social first-person shooting game "Crisis Action."

Reuters reported that the proposal will value the NASDAQ-listed CMGE at $673 million.

CMGE, the “largest publisher and a leading developer of mobile games in China” has offices in Guangzhou, Shenzhen, Beijing, Chengdu, Shanghai and Hong Kong.

TagsChina Mobile Games and Entertainment Group Ltd, Orient Hongtai (Beijing) Investment Management Co. Ltd, CMGE takeover offer, Naruto publisher, CMGE