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Tencent buys 19.9% stake in 58.com for USD 736 mln

2014-06-29 17:25:00| Telecompaper Headlines

(Telecompaper) Chinese internet and mobile services firm Tencent has agreed to invest USD 736 million in exchange for approximately 19.9 percent equity interest in Chinese online marketplace 58.com. Tencent has agreed to purchase 36,805,000 Class A and B ordinary shares at a purchase price of USD 20 per ordinary share, corresponding to USD 40 per American Depositary Share, each representing two ordinary shares. In addition, 58.com will use part of the proceeds from this transaction to repurchase 27,603,750 ordinary shares from existing pre-IPO shareholders. Tencent and 58.com have agreed to use each other as the preferred partner in local services. Tencent and 58.com plan to jointly build out online-to-offline (O2O) services leveraging the combined features of their respective platforms.

Tags: usd buys stake mln

Category:Telecommunications

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