<article><a href="https://www.dealstreetasia.com/tag/tencent/">Tencent Holdings</a> has agreed to purchase over 1 billion shares of e-commerce platform Youzan to own a 6.7 per cent stake in the Hong Kong-listed company.</article>

<a href="https://www.dealstreetasia.com/tag/tencent/">Tencent Holdings</a> has agreed to purchase over 1 billion shares of e-commerce platform Youzan to own a 6.7 per cent stake in the Hong Kong-listed company.
Youzan announced that it will sell nearly 1.72 billion shares to five subscribers including Tencent’s wholly-owned unit Poyang Lake Investment, at HK$0.53 apiece, raising net proceeds of HK$910 million ($116 million).
The shares subscribed by the Tencent subsidiary are therefore worth HK$549.5 million ($70 million).
The total subscription shares will represent 11.1 per cent of Youzan’s capital following completion of the transaction.
Other subscribers include Mega Prime Development, Gaocheng Fund I, Franchise Fund and Elephas Global Master Fund.
Youzan said it will use the net proceeds for system upgrade, product development, marketing, promotion of advertising services and general working capital.
Hangzhou-based Youzan has not become profitable yet. It posted a loss of HK$839.4 million in the last financial year.
The company develops SaaS products for online and offline retailers. It started to weigh its target on offline merchants in 2017.
The Tencent investment comes on the heel of its recently announced restructuring that will see it shift its focus from consumers to business clients. The internet giant is pursuing the integration of its internet properties with offline sectors such as retail, medical and education.
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Youzan will sell a stake to five buyers, including Tencent-owned Poyang Lake Investment, to raise net proceeds of HK$910 million ($116 million).

Tencent picks up 6.7% stake in e-commerce platform Youzan for $70m

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Tencent picks up 6.7% stake in e-commerce platform Youzan for $70m

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