Tencent Holdings Ltd. and its partners will pay $8.6 billion to acquire an 84.3% stake in Supercell, the maker of the popular Clash of Clans game, in a deal that is valued at $10.2 billion.
Tencent and its partners will purchase the stake in Supercell Oy from Softbank Group Corp, a Japanese telecommunications company, and the company’s current and former employees.
The purchase of the stake will occur in stages and is still in discussions with co-investors to join in on the purchase, the company said in a statement on Tuesday. China focused fund manager Hillhouse Capital Group has been leading discussions to put together a consortium of investors to join with Tencent to buy part of the Supercell stake. This was said by people familiar with the matter.
Since the purchase is occurring in stages, Tencent has sufficient funds to pay the initial purchase. The company is also planning to raise additional debt secured by Supercell’s assets to help cover some of the acquisition costs.
The deal is expected to close in Q3 2016 and is subject to regulatory approvals, the companies said. Once the deal is closed Softbank will no longer own any shares in Supercell.
Source: Wall Street Journal