China LotSynergy Surges on Report Tencent in Talks for StakeLulu Yilun Chen and Moxy Ying
China LotSynergy Holdings Ltd., which provides technology for lottery products in China, rose the most in two weeks after a report its shareholders are in talks with Tencent Holdings Ltd.
The stock surged 17 percent, the biggest gain since March 7, to close at 81 Hong Kong cents, giving the company a market value of HK$6.3 billion ($813 million). Tencent dropped 2.5 percent to HK$109.20.
China LotSynergy Chairman Lau Ting and another investor are in talks for Tencent to acquire a stake, China.com.cn reported, citing unidentified people familiar with the matter. Jerry Huang, a director of investor relations at Shenzhen, China-based Tencent, didn’t respond to an e-mail, text message and phone call from Bloomberg News.
Cathy Han, the deputy director for investor relations at China LotSynergy, couldn’t be reached by phone and didn’t respond to an e-mail seeking comment.
Tencent, Asia’s biggest Internet company by market value, has been adding content and services to boost revenue and help fend off challenges from rivals such as Alibaba Group Holding Ltd. and Baidu Inc. Lottery sales in China grew 16 percent to 80 billion yuan during the first three months of this year, spurred by games played on smartphones and personal computers, according to China LotSynergy’s website.