Tencent-Yonghui deal sets up clash with Alibaba
Tencent pays 4.22 billion yuan for 5% stake in Yonghui Superstores
Hong Kong
TENCENT Holdings Ltd will buy a stake in Chinese supermarket chain Yonghui Superstores Co for about 4.22 billion yuan (S$860 million) , setting up a clash with arch-rival Alibaba Group Holding Ltd in physical retail.
China's largest internet corporation is acquiring about 5 per cent of Yonghui from existing shareholders at 8.81 yuan apiece, Yonghui said in an exchange filing on Friday, a 9.9 per cent discount to its price before trading was halted on Dec 8. The investment - a rare foray into traditional retail for a company known for games and messaging service WeChat - may be looking to drive adoption of its digital payments service in stores.
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