China Literature Boosts Stake in Game Developer; Shares Up 3%

MT Newswires Live

06/03

China Literature's (HKG:0772) operating entity in China, Shanghai Hongwen Networking Technology, agreed to acquire 28.22% equity interest in game developer Wuhan YHKT Entertainment, according to a Tuesday Hong Kong bourse filing.

Shares of the online literature platform were down nearly 3% in Wednesday afternoon trading.

Following completion of the purchase from Linzhi Lichuang Information Technology for 400.8 million yuan, China Literature will own a 59.7% stake in the target firm.

The acquisition is expected to boost China Literature's competitive advantages in building a leading IP industry value chain, the filing said.

Linzhi Lichuang Information Technology is ultimately controlled by Tencent (HKG:0700), which is the controlling shareholder of China Literature.

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