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58.Com Up 5%; Tencent To Buy 20% Stake For $736 Million

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58.com (NYSE: WUBA) extended earlier gains, running up more than five percent Friday after Tencent (OTC: TCEHY) agreed to acquire a 19.9 percent stake for $736 million.

Tencent said the deal gives it a 15.2 percent voting interest in 58.com, which has about 40.86 million shares outstanding.

58.com, shares of which gained about 14 percent in trading Thursday, has been called "the Craigslist of China." Tencent offers Internet and mobile service in China.

58.com shares are up 5.4 percent Friday at $55.03; Tencent was trading down less than a percent at $15.25.

Other China-based Internet companies appeared unaffected.

Posted-In: News M&A

 

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