Tencent Mobility, a unit of Tencent (0700), is seeking to raise up to US$1.55 billion (HK$12.09 billion) by selling shares in Chinese short-video company Kuaishou (1024), according to a term sheet seen by Reuters on Monday.
Here are more details from the term sheet:
- The Tencent unit is offering about 273 million Kuaishou Class B shares at HK$43.15 (US$5.50) to HK$44.53 each. The range values the sale at about US$1.50 billion to US$1.55 billion.
- The offer price represents a discount of about 3.2% to 6.2% to Kuaishou's last close of HK$46.00 on Monday.
- The sale is fully secondary, meaning Kuaishou will not receive any money from the deal. Tencent Mobility will receive the proceeds.
- The deal is expected to price on Monday, trade on Tuesday and settle on Thursday.
- Kuaishou runs one of China's major short-video and livestreaming platforms, according to its website.
- Tencent and Kuaishou did not immediately respond to Reuters requests for comment sent outside regular business hours.
Reuters
