Orrick, Herrington & Sutcliffe and Skadden, Arps, Slate, Meagher & Flom are leading a $1 billion deal that will see Chinese gaming company Perfect World Co. Ltd. taken private by founder and chairman Michael Chi.

Chi offered to buy all the outstanding shares of Nasdaq-listed Perfect World at $4 apiece, a 28 percent premium to the company's closing price just prior to receiving the take-over proposal in January. The deal values Perfect World at $1 billion.

Founded by Chi in 2004, Beijing-based Perfect World developed the popular online role-playing games “Perfect World,” “Ether Saga Odyssey” and “Fantasy Zhu Xian.” It is the third U.S.-listed Chinese gaming company taken private in the past 18 months.