Tencent to spend $736 million acquisition of a 19.9% stake in the city of 58

Sina

technology news Beijing time on June 27th evening news, 58 city (NYSE:WUBA) and Tencent (SEHK: 00700) announced today, about 19.9% of the equity Tencent will invest $736 million acquisition of 58 city fully diluted.

under the agreement, Tencent will be $20 per common share price of the acquisition of the city’s 58 shares of A shares of common stock and common shares of B shares, equivalent to $40 per share of American Depositary Shares of $36805000.

58 city, said some of the proceeds of the transaction will be used to repurchase 27603750 shares of common stock from the current shareholders before the IPO.

in addition, Tencent and 58 city also agreed that the two sides will each other in their local services as the preferred partner. The two companies will also use the advantages of their respective platforms to build the next generation of O2O services.

by capturing from Tencent QQ, WeChat QQ.com and QQ browser and other online assets flow, 58 city will further consolidate its leading position in the local service market. In addition, the integration of the 58 city services to these assets, will expand the user base of the city of 58, enhance the user experience, enhance communication capabilities.

for Tencent, this investment will further improve its O2O e-commerce ecosystem. And its social users will benefit from a wider range of local services, businesses will benefit from better customer relationship management and more accurate consumer advertising services. (Li Ming)

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