Tencent to consider bid for US$3 billion AS Watson stake, as rival Alibaba shows interest
- Shenzhen-based Tencent may team up with some investment funds for an offer for the stake in AS Watson
Chinese internet giant Tencent Holdings is weighing a bid for part of Temasek Holdings’ stake in global retailer AS Watson Group, people with knowledge of the matter said.
The Singapore state investment company is considering selling around a 10 per cent stake in the world’s largest health and beauty retail group for about US$3 billion, according to the people, who asked not to be identified because the information is private. That is just under half of its 25 per cent holding.
Shenzhen-based Tencent may team up with some investment funds for an offer for the stake in AS Watson, which is a unit of Hong Kong tycoon Victor Li Tzar-kuoi’s CK Hutchison Holdings, the people said.
The holding has also drawn interest from Chinese tech billionaire Jack Ma’s Alibaba Group Holding, according to the people. Potential buyers are being invited to management presentations this month, one of the people said.
Shares of Hong Kong-listed conglomerate CK Hutchison rose 2.5 per cent at the close of trading on Wednesday, the biggest gain in more than two months, after earlier rising as much as 3.5 per cent. The benchmark Hang Seng Index fell 0.5 per cent.