DLA Piper advises BAIOO on Tencent strategic investment

DLA Piper has advised BAIOO Family Interactive Limited (“BAIOO”) and its substantial shareholder, on an investment made by Tencent Holdings Limited (“Tencent”), through its wholly-owned subsidiary THL H Limited, in BAIOO. Upon completion, Tencent will be a substantial shareholder in the company of owning approximately 12% of its share capital.

BAIOO is a leading internet content and service provider in China. Founded in 2009 and listed in 2014 on the Main Board of the Hong Kong Stock Exchange, it is one of China’s Top 100 Internet Companies. It is mainly engaged in developing and publishing mobile and PC games, with its key products having attracted nearly 300 million registered users.

The Chinese tech giant Tencent, is one of the world's biggest entertainment and media companies and is listed on the Main Board of the Hong Kong Stock Exchange with a market capitalization of approximately USD942 billion (HKD7,300 billion).

The cross-border DLA Piper team was led by Christina Loh (Capital Markets Partner, Hong Kong), James Chang (Corporate Partner, Beijing), Windson Li (Tax Partner, Beijing) and Kelvin Chen (Litigation Partner, Shanghai), supported by corporate associates Michael Ho (Hong Kong), Shawn Xin (Hong Kong), Jin Shenglan (Beijing), David Lam (Hong Kong), Jiang Tuo (Hong Kong), and litigation associate Eva Yao (Shanghai).

Christina Loh, Hong Kong based Capital Markets partner at DLA Piper, commenting on the transaction, said: “Leveraging our experience across multiple practice groups was central to this transaction, involving our corporate, tax and litigation teams. This was a true illustration of the effectiveness of our cross-jurisdictional advantage, providing BAIOO with a single team and a fully integrated one-stop service.