Tencent Holdings Reportedly Close To Finalizing Acquisition Of Leyou Technologies

Chinese conglomerate Tencent Holdings is reportedly virtually reaching a final deal with Leyou Technologies and will be taking the firm private in a bargain estimated to be valued at $i.3 billion, co-ordinate to a recent report by Bloomberg.

Leyou Technologies, developer of titles such as Warframe, has been in discussion with other companies over recent months that seemed eager to acquire the Chinese gaming business firm. Every bit recently equally July, Leyou's stock trading was paused temporarily every bit the company offset began exploring an exclusive agreement with Tencent Holdings.

The Lath announces that on ten July 2020 (before trading hours), Mr. Yuk and the Company
entered into an exclusivity agreement (the "Privatization Exclusivity Agreement") with
Tencent Mobility Express (the "Potential Acquiror"), a wholly-owned subsidiary of Tencent
Holdings Express, a company whose shares are listed on the Stock Substitution (stock code:
700), regarding a possible acquisition and privatization of the Visitor (the "Possible
Privatization").

As the reporting currently stands, negotiations are "in an advanced stage" with an agreement possibly announced as early as this week, according to people familiar with the matter. The electric current state of the Tencent and Leyou merger indicates that the former is in talks to present an offer toll range of roughly HK$iii.30 - HK$three.40 for each Leyou share. Charles Yuk, Leyou's primary shareholder, plans to sell his stake in the company in its entirety, holding approximately 69% of the company's stock according to 2019's fiscal annual written report.

Leyou Technologies owns Warframe developer Digital Extremes, Splash Damage, and is developing a Lord of the Rings MMORPG in collaboration with Amazon Game Studios and Centre-Earth Enterprises.