Tencent to buy 16% of Kingsoft for $115m to expand
Updated: 2011-07-07 15:13
Tencent Holdings Ltd, China's biggest Internet company, agreed to buy a 15.7 percent stake in Kingsoft Corp for HK$892 million ($115 million) to expand in computer-security services, Bloomberg reported Thursday
Tencent will buy 111.5 million shares from Kingsoft Chief Executive Officer Kau Pak Kwan and 66.9 million shares from non-Executive Director Cheung Shuen Lung, Kingsoft said in a filing to Hong Kong's stock exchange on Wednesday. The deal is scheduled to be completed Thursday, Kingsoft said.
Kingsoft rose 15 percent to HK$5.77 as of 10:09 am in Hong Kong trading, after being halted on Wednesday pending the announcement. The shares earlier surged as much as 19 percent, the biggest intraday jump since April 2008.
Tencent rose 0.8 percent to HK$216.20 and has gained 28 percent this year, trailing Chinese Internet stocks including Baidu Inc and Sina Corp.