Three founders of software developer Kingsoft Corp say they will act in concert to effectively remain as the company's largest shareholder even though Tencent Holdings, the mainland's largest internet portal, has acquired a 15.68 per cent stake in the firm.
Tencent bought the stake for HK$892 million from Kingsoft's founder and chief executive Kau Pak-kwan and director Cheung Shuen-lung. Kau and Cheung still own 9.54 per cent and 3.05 per cent of the company, respectively.
Lei Jun, a co-founder and chairman of Kingsoft, said he had signed a voting deed agreement with Kau and Cheung. Lei owns 10.3 per cent of the company.
'We will hold about 23 per cent of the stake together, to make sure the effective control and management over the company remain with its founders,' Lei said.
'Tencent will be granted a seat on the board, but it will not participate in the daily management of Kingsoft.'
Kau said he had agreed to hold his remaining shares for the next three years, as did Cheung. Lei will have voting rights to their shares.
Shares of Kingsoft rose as much as 19 per cent yesterday, before closing for a gain of 9 per cent at HK$5.45. Tencent edged up 0.09 per cent.