(Bloomberg) — Tencent Holdings Ltd. is in state-of-the-art talks to consider Chinese gaming firm Leyou Systems Holdings Ltd. non-public, edging out other potential suitors like Sony Corp. in a struggle for the Hong Kong-mentioned organization.
Tencent Mobility Ltd., a wholly-owned unit of the Chinese tech huge, has entered into an distinctive agreement with Leyou for a likely privatization, Leyou reported in an trade submitting on Friday. That confirmed an before Bloomberg News report.
Leyou didn’t supply any economic facts in the assertion and reported there is no certainty an agreement will be achieved. The unique settlement is valid for three months, it claimed.
Buying and selling in Leyou, which has a market price of about $1.1 billion, will resume on July 13.
Leyou’s controlling shareholder Charles Yuk had been in talks with Tencent-backed iDreamSky Technologies Holdings Ltd. for a bulk stake sale because late previous year. In Could, Leyou confirmed it gained another non-binding offer you from Zhejiang Century Huatong Team Co., a Shenzhen-outlined gaming organization that also counts Tencent as a shareholder.
Tencent’s give could take care of what experienced been an escalating contest for Leyou, with Sony thinking about becoming a member of the bidding, Bloomberg News described earlier this thirty day period.
Century Huatong reported on Friday, in advance of Leyou’s announcement, that it had finished the takeover talks with the gaming business.
(Updates during with Leyou’s statement)
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