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NetEase to spin off Cloud Village, its music streaming service operator, in Hong Kong IPO
- Cloud Village operates the company’s music streaming service, NetEase Cloud Music
- NetEase would retain at least 50 per cent of the voting rights following IPO
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NetEase said it plans to spin off Cloud Village, the operator of its NetEase Cloud Music streaming service, in an initial public offering in Hong Kong.
The Hangzhou-based tech company said it had received permission from the Hong Kong stock exchange to move forward with a potential spin-off of the business.
NetEase would hold at least 50 per cent of the voting rights of Cloud Village and the company would remain a NetEase subsidiary following the IPO. NetEase owns 62.46 per cent of Cloud Village’s total issued share capital.
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“Cloud Village’s business is expected to undergo relatively rapid business expansion and would be appealing to an investor base that focuses on high growth opportunities in the music streaming business, different from the relatively more diverse business model of NetEase’s operations,” the company said in a stock exchange filing on Wednesday.
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Details of the proposed spin-off, including the size of the offering, have not been finalised, NetEase said. It would include a Hong Kong retail offering, as well as an offering to international investors.
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