Tencent nears deal to take gaming firm Leyou private

Tencent Holdings Ltd is close to taking Leyou Technologies Holdings Ltd private in a deal that would value the Chinese gaming firm at about $1.3 billion, according to people familiar with the matter.

The companies are discussing an offer price range of HK$3.30 to HK$3.40 for each Leyou share, said the people, who asked not to be identified as the information is private. Leyou’s major shareholder Charles Yuk plans to sell his entire stake in the company, the people said. Yuk held about 69% of the Hong Kong-listed firm as of the end of December, its latest annual report shows.

Shares of Leyou erased earlier losses and jumped as much as 4.8% on the Bloomberg News report. The stock closed up 2.9% at HK$3.20, giving the gaming company a market value of about $1.27 billion.