Tencent raises $850M from Chinese investors to fund Supercell purchase
A consortium formed by Chinese internet giant Tencent has raised $850 million to help the company complete its $8.6 billion acquisition of Supercell.
The cash was raised by issuing new consortium shares to a handful of investors including Chinese investment companies CITIC Capital, Hundreds Capital, and AVIC Capital.
As a result of the share sale, the new co-investors have been granted a 50 percent stake in the consortium, meaning it will cease to be a wholly-owned Tencent subsidiary.
Tencent agreed to purchase an 84.3 percent stake in the Clash of Clans and Clash Royale creator back in June, and said it would talk to co-investors in an attempt to raise the significant funds required.
The Chinese company will purchase an initial 73.2 majority stake in the Finnish studio from Japanese mobile outfit, SoftBank, and plans to gather the rest from Supercell employees.
Once the acquisition has been completed, Tencent's consortium will indirectly hold 76.9 percent of Supercell.