Tencent to acquire 11.3% stake in NavInfo for $187 million
Tencent is going to spend 1.17 billion yuan ($187 million) to buy an 11.3% stake in NavInfo, one of the largest mapping companies in China. Tencent is known for building the mobile text and voice messaging communication service WeChat. NavInfo will power a number of Tencent’s products. This deal is interesting because Tencent’s largest competitor Alibaba Group recently acquired a stake in NavInfo competitor AutoNavi Holdings.
AutoNavi is powering Alibaba’s location-based e-commerce mobile services and other navigation offerings including map engines, cloud computing services, and location search.
Tencent will be acquiring 78 million shares from NavInfo’s owner China Siwei Surveying and Mapping Technology Corp. Tencent will become the second-largest shareholder of NavInfo after the stake is purchased. Tencent and NavInfo revealed the deal in a Shenzhen Stock Exchange filing discovered by Bloomberg.