Chinese internet giant Tencent Holdings has agreed to acquire an 11.28% stake in Beijing-based digital mapping service provider Navinfo Co. Ltd. for RMB1.173 billion yuan (US$187 million), according to a securities filing of Navinfo.
Tencent’s investment arm, Tencent Industry Fund, will acquire 78 million shares of Navinfo at RMB15.04 per share from Navinfo’s major shareholder, China Siwei Surveying & Mapping Technology Corporation.
After the deal is completed, China Siwei’s stake will drop to 12.58%. The Shenzhen-listed Navinfo closed at RMB15.38 yesterday.
The deal is still pending regulatory approval.
Tencent’s move follows a similar acquisition made by its rival. In February, Alibaba Group offered to buy out the 72% stake it doesn’t already own in NASDAQ-listed digital mapping and navigation firm AutoNavi Holdings Limited for US$1.1 billion.
That deal has won board approval last month.
China’s biggest Internet companies have been on a deal frenzy lately. Alibaba and its founder Jack Ma has been involved in deals with a total value of US$5 billion this year.