Tencent To Acquire Additional Stake In Kingsoft Network For USD46.98 Million
Kingsoft Corporation Limited recently published a report, stating that the company will acquire an addition stake in Kingsoft Network along with Tencent, with USD46.98 million additional investment from Tencent and USD5.22 million from Kingsoft Corporation.
In addition, Kingsoft Network’s chief executive officer Fu Sheng and chief technology officer Xu Ming will have the rights to sell their shares for up to USD9.3 million within the next 24 months.
According to the report, Kingsoft Corporation and Tencent signed the agreement with Fu and Xu on June 23, 2013. The two companies will invest USD5.22 million and USD46.98 million, respectively, to acquire series B preferred stock of Kingsoft Network. The acquired stock will account for 10% of the total stock of Kingsoft Network after the issuance of new shares, of which Kingsoft Corporation will hold 1% and Tencent 9%.
On the completion of the acquisition, Kingsoft Corporation’s ownership of Kingsoft Network will decrease from 58.98% to 54.09%; while Tencent’s stake will increase from 10% to 17.99%. The prerequisites of the acqusition include that Kingsoft Network experiences no substantive negative change since the signing of the agreement.
Public statistics showed that Kingsoft Corporation made net losses of CNY21.62 million in 2011, and it gained net profit of CNY35.52 million in 2012.