Shares of Perfect World Co., Ltd. (ADR) PWRD spiked up over 20 percent Friday following a proposal to take the company private by its founder.

According to the company’s press release, “its board of directors has received a preliminary non-binding proposal letter dated December 31, 2014 from its founder and chairman of the Board, Mr. Michael Yufeng Chi, to acquire all of the outstanding shares...for $20.00 per American Depositary Share ("ADS") or $4.00 per ordinary share in cash.”

The Board cautioned shareholders and others “considering trading in its securities that the Board just received the preliminary non-binding proposal from Mr. Chi and no decisions have been made by the Independent Committee with respect to Perfect World's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.”

Shares of Perfect World Co., Ltd. (ADR) recently traded at $18.98, up 20.43 percent.