Tencent Said in Talks for $3.5 Billion Supercell Purchase Loanby
Firm discussing non-recourse financing with relationship banks
Facility to back purchase of the Finnish maker of mobile games
Tencent Holdings Ltd. is in talks with lenders for a loan of about $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 authorized to speak publicly and asked not to be identified.
Tencent is leading a $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 Ltd. getting a $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.