Chinese technology giant Tencent (0700) is exploring a potential acquisition of South Korean video game company Nexon, as it seeks to further expand its gaming business, Bloomberg News reported, citing people familiar with the matter.
The report said Tencent has approached family members of Nexon's late founder Kim Jung Ju to discuss a possible deal. Kim’s family has been working with advisers to evaluate various options, the sources said.
Kim’s relatives hold a 44.4 percent stake in Nexon through their family investment vehicle NXC and its affiliate NXMH BV, according to Nexon's latest interim report. Kim's wife and daughter own approximately 67.6 percent of NXC.
The sources cautioned that they remain unclear whether NXC is open to selling its stake in Nexon, and the outcome of Tencent’s approach is still uncertain, according to the report. The structure of any potential deal has not been finalized, they added.
Founded in 1994 and listed in Japan since 2011, Nexon is known for role-playing games such as MapleStory. The company’s shares have risen more than 10 percent this year in Tokyo, giving it a market capitalization of around US$15 billion (HK$117 billion).
Tencent declined to comment, while NXC and Nexon did not immediately respond to requests for comment, according to Bloomberg.
STAFF REPORTER
