Tencent Holdings Ltd will invest $317.6 million in Chinese streaming site Bilibili in return for a 12.3 per cent stake, the two companies announced this week.
Bilibili’s other shareholders include Tiger Global Management, Wells Fargo, JPMorgan Chase, BlackRock and Alkeon Capital Management.
Under an agreement signed by the two companies, Tencent will subscribe to 25 million newly-issued Class Z ordinary shares of Bilibili.
“The purchase price will be $12.67 per Class Z ordinary share, which is equivalent to $12.67 per American Depositary Share of Bilibili, each of which represents one Class Z ordinary share. The transaction is expected to close in the near future, subject to customary closing conditions,” said the statement.
Bilibili raised about $483 million in its US IPO in March this year at a valuation of more than $3 billion. Its stock ended trading Thursday down 5.71 per cent at $13.55. Its market cap stood at $4.02 billion.
Last month, Bilibili has taken up a minority stake in Japan-based Fun-Media to expand its animation offering. It has invested in over 20 Japanese anime productions since 2015.
On the other hand, Tencent has announced its first restructuring earlier this week where it will consolidate its three content business groups to one unit and create a new group for cloud and smart industries.
Tencent’s music unit, Tencent Music Entertainment Group is also filing for an IPO in the US, which could be the biggest US IPO by a Chinese company as it seeks a valuation of about $25 billion, according to a Reuters report.