Giant Interactive Group will be China's first United States-listed online gaming company to go private, due to its low valuation on the New York Stock Exchange in contrast to the sector's popularity in the domestic capital market.

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Giant Investment Ltd will acquire Giant Interactive Group for $3 billion and take it private, the US-listed company said on Monday.

Giant Investment adjusted its offer to $12 a share, an 18.5 percent premium to Giant Interactive's closing price on Nov 22, 2013, just before Giant Investment's bid.

The transaction is expected to conclude in the second half of 2014.

Giant Interactive said the buyers' group, including Giant Interactive Chairman Shi Yuzhu and Baring Private Equity Asia, already owned 49.3 percent of the company.

The buyers' group will obtain a loan of $850 million from a consortium of banks including China Minsheng Banking Corp Ltd, BNP Paribas SA and Credit Suisse Group AG.

Insiders said Chinese private equity firm Hony Capital Ltd will participate in the deal, with an investment of $500 million. A Hony spokesman said that the firm had no comment.

Giant Interactive announced on Nov 25 last year that it had received a takeover bid from the buyers' group.

Che Jian, an investment manager at Shenzhen-based venture capital firm Oriental Fortune Capital, said that Giant Interactive couldn't raise much money in the US market, but it still had many obligations as a result of being listed there. With a strong cash flow, going private was a good choice, Che said.

"It can do many things after going private, including going public at home, and its valuation is expected to have a fivefold increase at least," said Che.

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