Kingsoft IR, 7/06/11
Chinese software company Kingsoft (3888.HK) has announced that internet giant Tencent (0700.HK) will acquire a 15.68% stake in Kingsoft from existing shareholders, and will make a strategic investment in anti-virus software subsidiary Kingsoft Internet Security. Through the establishment of long-term strategic partnerships, the two companies will partner to provide Internet security solutions to users, and will explore further collaboration in the software and online gaming markets.
Under the share purchase agreements, Kingsoft founder and executive director Kau Pak Kwan and non-executive director Cheung Shuen Lung will transfer a total of 15.68% of their shares in Kingsoft Corporation Limited to Tencent. The total consideration comes to HKD 892 mln. Tencent will invest an undisclosed sum in Kingsoft Internet Security.
Editor's Note: For more information on this topic, please see "Rumor: Tencent to Invest in Kingsoft Network," MD 7/05/11 issue.