Davis Polk advised Tencent Holdings Limited in connection with its subscription of 1,036,766,038 ordinary shares of China Youzan Limited for an aggregate subscription price of HK$550 million.
Upon completion of the subscription agreement, a total of 1,036,766,038 new shares will be allotted and issued by China Youzan Limited to a wholly owned subsidiary of Tencent Holdings Limited pursuant to the subscription agreement, representing approximately 7.01% of the total enlarged issued share capital of China Youzan Limited and approximately 6.70% of the total enlarged issued share capital of China Youzan Limited immediately following completion of all the subscription agreements entered into between China Youzan Limited and four other subscribers on April 2, 2019.
Founded in 1998, Tencent is one of China’s largest and most widely used Internet service portals. China Youzan Limited was listed on the GEM of the Stock Exchange of Hong Kong Limited in 2000 (Stock Code: 8083). China Youzan Limited consists of four operating segments, which are (i) provision of e-commerce platform with a variety of SaaS products and comprehensive services in China; (ii) third-party payment services; (iii) provision of third-party payment system solution and sales of integrated smart point of sales devices; and (iv) general trading.
The Davis Polk corporate team includes partners Paul Chow and Miranda So, counsel Yang Chu and associate Jeffrey Chan. All members of the Davis Polk team are based in the Hong Kong office.