Tencent to take about 5 percent stake in investment bank CICC for $367 million

Reuters
A sign of Tencent is seen during the third annual World Internet Conference in Wuzhen town of Jiaxing, Zhejiang province, China November 16, 2016. REUTERS/Aly Song

REUTERS - Tencent Holdings Ltd will invest HK$2.86 billion ($366.6 million) in China International Capital Corp Ltd (CICC) for a 4.95 percent stake in the Chinese investment bank, CICC said on Wednesday. Tencent Mobility, a unit of Chinese internet company Tencent, will subscribe for 207.5 million new Hong Kong-listed shares of CICC at a price of HK$13.80 per share, representing an 11 percent discount to the stock's Wednesday closing price. Tencent's investment comes as several technology-focused players enter financial sectors such as securities, banking and insurance. Reuters reported last week that JD.com Inc, Tencent's rival and China's No.2 e-commerce company, was in talks to buy a 24 percent stake worth about $1.5 billion in brokerage First Capital Securities Co Ltd. ($1 = 7.8019 Hong Kong dollars) (Reporting by Ambar Warrick in Bengaluru)