Tencent Holdings Ltd (HKG:0700), one of China’s biggest listed tech firms, is going to buy a 20% stake in online classifieds company 58.com Inc (NYSE:WUBA) for $736 million. Tencent is known as the parent company of the mobile messaging app WeChat.
Tencent has spent over $1.2 billion in areas like e-commerce, real estate, and digital mapping since the start of 2014. 58.com is known as the “Craigslist of China.”
Tencent will buy 36.8 million Class A and B ordinary shares of 58.com for $20 per share, which corresponds to $40 per American Depositary Share (ADS). 58.com is going to use the proceeds to buy back about 28 million shares from existing pre-IPO shareholders.
[Source: Yahoo! News]