June 27 Tencent Holdings Ltd, China's
biggest listed tech firm, will buy a 20 percent stake in online
classifieds company 58.com Inc for $736 million as the
company looks to boost its presence in the e-commerce business.
Tencent, known for its mobile messaging app WeChat, has
already spent more than $1.2 billion in areas such as
e-commerce, real estate and digital mapping since the beginning
of 2014. Its many investments include a March tie-up with JD.com
The deal will help 58.com Inc, dubbed the Craigslist of
China, to draw more traffic by clubbing its services with
Tencent's online sites such as QQ, Weixin, QQ.com, and QQ
browser, the companies said on Friday.
58.com's ADSs, which fell as much as 7 percent in early
trade, recovered later to be up 2.6 percent.
Tencent will buy 36.8 million Class A and B ordinary shares
of 58.com for $20 per share, which corresponds to $40 per
American Depositary Share (ADS).
58.com will use part of the proceeds to buy back about 28
million shares from existing pre-IPO shareholders.
58.com's shares were trading at $53.60 on the New York Stock
Exchange. They have nearly doubled in value since listing in
(Reporting By Lehar Maan in Bangalore; Editing by Sriraj