Deals
China Literature Falls After $2.3 Billion New Classics Deal
- One Tencent affiliate is buying assets from another one
- Analyst sees the deal as aimed at propping up growth
China Literature’s QQ Reading application.
Photographer: Anthony Kwan/BloombergThis article is for subscribers only.
China Literature Ltd., the e-books business spun off by Tencent Holdings Ltd., plunged the most since its initial public offering after agreeing to buy New Classics Media from its controlling shareholder for as much as 15.5 billion yuan ($2.3 billion).
Shanghai-based China Literature fell 17 percent, the most since its November offering. The offering, which raised more than $1 billion, was considered a blockbuster in part because the stock soared 86 percent on its debut. Now, shares have dropped almost 50 percent from their peak and are approaching their IPO price.