Chinese gaming giant, Tencent Holdings has been considering to bid for the holding company which controls the South Korean gaming company Nexon. This was revealed to Reuters by two sources which had apt knowledge regarding the matter.
The sources added- Tencent has been looking to enlist their co-investors. The private equity firms have been studying the options which could be locked in for a deal, and this includes taking the listed company into a private listing.
Korea Economic Daily newspaper reported that the founder of Nexon, Kim Jung-ju has plans of selling a dominating 98.64 percent stake during Nexon’s holding firm NXC Corp, which is currently held by himself and related parties which include his wife. The stake is valued somewhere between KRW 8 trillion and 10 trillion ($7.1 billion and $8.9 billion).
Deutsche Bank and Morgan Stanley have been running the sale, but neither Deutsche Bank nor Morgan Stanley made any comment regarding the situation.
The Maeil Business Newspaper told that Tencent has selected Goldman Sachs as their adviser, and this was revealed by sources which haven’t been identified. They also went on to add that other potential bidders might include KKR & Co, TPG Capital, Carlyle Group and MBK Partners.