(Yicai Global) June 11 –- Internet giant Tencent Holdings will acquire a minority stake in software developer Changshan Beiming Technology to jointly offer legal counsel and dispute resolution services online.
Tencent will invest CNY300 million (USD46.8 million) through its investment arm to acquire a 2.24 percent stake in Beiming, the Hebei-based software firm said in a statement. The price will be CNY8.1 per share, which is 15 percent less than the amount the stock closed at during its last day of trading on May 29 before a suspension related to the sell-off.
Under the deal, Tencent will introduce its technologies such as cloud services, artificial intelligence, video communication and features from its social media WeChat application on Beiming's online dispute resolution platform.
The pair will offer online legal services such as courts, arbitration, notarization and solutions that facilitate judicial procedures on a nationwide basis. Current clients include local governments and the two parties will set up a joint team to co-develop smart city projects for large and medium-sized cities.
Currently, the platform has little revenue and some 60,000 registered users.
Tencent has also invested in a company that is a shareholder of DHC Software, a leading Chinese software provider, to introduce its cloud computing, big data, the Internet of Things and other technologies to applications that the Beijing-based firm develops for its clients.
Editor: Emmi Laine