Tencent Holdings Ltd. has stated thaat a consortium intent on buying game developer Supercell has raised $850 million by selling new shares to investors among them Chinese state-owned investment firms AVIC Capital and CITIC Capital.
China’s biggest gaming group Tencent had agreed in June to buy the “Clash of the Clans” mobile game maker from Japan’s Softbank Group Corp for $8.6 million. However it had also noted that it form a consortium with co-investors in order to acquire the necessary finance for the purchase.
Once the sale of the shares is complete, all co-investors who also include bad debt manager firm China Cinda Asset Management, will own 50% of the consortium in total. The money raised from the share sales will be partially used to fund the acquisition of Supercell with Tencent stating that the company expects the deal to be finalized somewhere around around the 27th of October.
In the intervening time the primary finance of the acquisition is to be provided by various bank loans. For the moment Tencent has received commitments of over $1.8 billion from 12 to 13 banks for a $3.5 billion loan. After the acquisition is complete the consortium formed by Tencent will be the indirect owner of 76.9% of Supercell.