Tencent unit acquires stake in China LotSynergy

China LotSynergy said a unit of China’s Tencent has agreed to take a stake in the company for about HK$445.5 million ($57.4 million).
Hongze Lake will buy 594,034,513 new shares at a price of $0.75 each. China LotSynergy also gave the company the option to subscribe to a further 273,140,969 shares at $0.83 each.
If the option is exercised, the total proceeds from the sale will rise to $672.2 million, the company said in a Hong Kong Stock Exchange filing.
The share issue represents 7.00 percent of the enlarged share capital of China LotSynergy, excluding the option. If the option is fully exercised the shares represent a further 3.46 percent of the capital.
China LotSynergy said it will use the proceeds for working capital and for investments should the opportunity arise.
“The board considers that the subscription lays a good foundation for future cooperation
between the group and Tencent,” it said.