Xiaomi to buy 3% of software firm Kingsoft

Beijing

CHINA'S Xiaomi Inc has agreed to buy about 3 per cent of software firm Kingsoft Corp Ltd from Tencent Holdings Ltd for HK$527 million (S$90.5 million), according to a Kingsoft filing on Monday. The deal with Xiaomi, the world's third-biggest smartphone maker, is expected to close on Jan 30, the filing to the Hong Kong exchange said. Chinese social networking and video game giant Tencent will still hold 9.6 per cent of Kingsoft.

Xiaomi chief executive and chairman Lei Jun is also a founder and now chairman of Kingsoft, which makes entertainment, Internet security and office software. The deal is set to increase Mr Lei's voting rights in Kingsoft to 29.9 per cent.