Shanda Games: Grand Court's valuation upheld but Cayman ploughs its own furrow on minority discounts

On an appeal by Shanda Games Limited (Shanda), against Justice Segal's decision at first instance not to apply a minority discount to the valuation of the Dissenting Shareholders' shares in Shanda, the Cayman Islands Court of Appeal has held that a minority discount should be applied to cases under section 238 of the Companies Law (2018 Revision) (the Law). The decision represents a significant departure by the Cayman courts from the established position in Delaware and Canada where the courts do not apply minority discounts in appraisal cases. Shanda's appeal against Segal J's approach to the award of interest was, however, dismissed by the Court of Appeal, as was its attempt to re-open its case to adduce fresh expert evidence.