Tencent To Acquire Remaining Stake In SZdomain For CNY150 Million
The Chinese Internet company Tencent Holdings Limited has published an announcement, stating that it will acquire the remaining 40% stake in SZdomain, a Shenzhen-based online game developer and operator, for a consideration of over CNY150 million.
On the completion of this transaction, Tencent will own the complete stake in SZdomain.
Tencent said that it will invest CNY141.8 million to acquire a 29% stake in SZdomain from its founder and executive president, Zhang Yan. In addition, Tencent will gain the remaining 11% options of the company.
In November 2005, Tencent acquired a 19.9% stake in SZdomain for CNY29.9 million and then Tencent made another investment of CNY106.3 million in the acquisition of a 40.1% stake in SZdomain, gaining a total of 60% stake in the online game company in the two transactions. The new acquisition is expected to be completed before June 19, 2010.
Tencent’s board of directors said that the completion of the acquisition can ensure the smooth integration of Tencent and SZdomain. At the same time, Tencent will provide more resources and supports to SZdomain to promote the continuous development of the latter.
Founded in 1997, SZdomain is a high-tech software company specialized in the development and operation of online games and the research of network applications. It claims to be one of the few Chinese companies that have proprietary 2D and 3D game engine technologies and intellectual property rights.