Davis Polk is advising Tencent in connection with its investment in Kuaikan World (Cayman) Limited. Tencent subscribed for Series E preferred shares issued by Kuaikan and purchased certain preferred shares from existing shareholders. Before issuance of Series E preferred shares, Tencent also subscribed for a convertible note issued by Kuaikan, the proceeds of which was used to repurchase all of the outstanding shares held by a significant existing shareholder. Tencent’s aggregate investment is approximately $125 million in these transactions, and post-closing Tencent holds approximately 19% of total outstanding shares of Kuaikan.
Established in 2014, Kuaikan is a leading online comics and community platform in China. Tencent has been an investor in Kuaikan since 2017.
The Davis Polk corporate team includes partner Miranda So and associates Xi Shi and Michael Zhuoran Xu. Counsel Alon Gurfinkel and associates Omer Harel and Veronica Davis provided tax advice. Members of the Davis Polk team are based in the Hong Kong and London offices.