Tencent Affiliate to Buy Stake in Ourpalm Gaming Firm for USD72 Million
He Tianjiao
/SOURCE : Yicai
Tencent Affiliate to Buy Stake in Ourpalm Gaming Firm for USD72 Million

(Yicai Global) June 22 -- After five months of halted trading, Ourpalm Co. [SHE:300315] announced that its restructuring has been terminated and that Linzhi Tencent Technology Ltd. will purchase a stake in the firm, marking the first time that the Tencent group will directly invest in a game company on the A-share market, media reported.

To introduce Tencent as an important strategic partner, Yao Wenbin, Ourpalm's controlling shareholder, plans to sell 55,417,497 shares in a block trade to Linzhi Tencent Technology Ltd. (Linzhi Tencent), which is a wholly-owned subsidiary of Tencent Holdings Ltd. [HKG:0700]'s affiliate Shenzhen Tencent Industrial Investment Fund Co., for USD72 million (CNY490 million) based on a share price of CNY8.84, Ourpalm said on June 20. After the transaction is completed, Linzhi Tencent's holdings will account for 2 percent of the company's total share capital.

Before this, Ourpalm planned to buy a stake in Nanjing Fenbu Culture Co. to turn from an IP buyer to an IP owner. It intended to enter the H5 game field by acquiring a stake in Beijing Hortorgame Technology Co. The parties were unable to agree to terms and the deals fell through.

Ourpalm told Yicai Global that future schemes "will depend on investment opportunities. When there are suitable conditions, the company will consider continued pursuit of overseas, IP, entertainment and gaming endeavors."

"Ourpalm will carry out in-depth cooperation with Tencent, including joint distribution of self-developed products, multi-party cooperation via the integration of external game resources, cross-channel releases, overseas distribution and IP resource acquisition," Ourpalm said.

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Keywords: TENCENT , TECHNOLOGY , Mobile Game