Market Overview

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

Share:
Related WUBA
This 'Unlocks Value' At 58.com, Pacific Crest Says
Why Did Credit Suisse Upgrade 58.com?
New Strong Sell Stocks for May 27th - Tale of the Tape (Zacks)

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

 

Related Articles (TCEHY + WUBA)

Around the Web, We're Loving...