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Tencent said in talks for US$3.5b Supercell purchase loan
[HONG KONG] Tencent Holdings is in talks with lenders for a loan of about US$3.5 billion to back its purchase of a majority stake in Supercell Oy from SoftBank Group Corp, a person familiar with the matter said.
Asia's biggest internet company is discussing the non- recourse financing with its relationship banks, and the loan size may change, according to the person, who isn't authorised to speak publicly and asked not to be identified.
Tencent is leading a US$8.6 billion deal for control of Supercell, the Finnish maker of mobile games including Hay Day, Clash Royale and Boom Beach.
China's Internet giants have been tapping demand for "new economy" investments and raising more funds in debt markets, with the nation's biggest e-commerce company Alibaba Group Holding getting a US$4 billion loan earlier this year.
Canny Lo, a spokeswoman for Tencent, didn't immediately respond to an e-mail seeking comment and two phone calls went unanswered.