GGRAsia – Tencent seals purchase of China LotSynergy stake

Tencent seals purchase of China LotSynergy stake

Nov 05, 2014 Newsdesk Industry Talk, Latest News, Rest of Asia

Tencent Holdings Ltd, a firm that controls some of the most popular online social media platforms in mainland China, has completed a subscription – via a wholly held unit – to 594,034,513 shares of lottery technology firm China LotSynergy Holdings Ltd.

China LotSynergy supplies digital technology and services for mainland China’s official lotteries

As a result of the share issue exercise, Tencent’s unit, Hongze Lake Investment Ltd, now holds approximately 7 percent of the issued share capital of China LotSynergy, the latter company said in a filing to the Hong Kong Stock Exchange on Tuesday.

Hongze Lake also has an option to subscribe to a further 273,140,969 new shares. An earlier China LotSynergy filing on October 16 said that the option, if exercised, would push the Tencent unit’s stake to 9 percent.

The October 16 filing said Hongze Lake paid HKD445.5 million (US$57.4 million) or HKD0.75 per share, a discount of approximately 11.8 percent to the closing price on October 13.

China LotSynergy’s shares were up 2.47 percent in morning trading on Wednesday, at HKD0.83 per share by 11.05am.

Tencent provides Internet and mobile value-added services, e-commerce transactions services and online services in mainland China and international markets. The company’s services include QQ and the popular WeChat app, QQ Game Platform for online games, as well as e-commerce services.