Tencent co-founder takes lead in HK$900m Chinasoft fundraising

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Chinese philanthropist Charles Chen Yidan will have beneficial ownership of HK$540 million of the convertible notes upon completion of the subscription. Photo: Handout

Published: 3:02pm, 19 Apr 2017Updated: 10:34pm, 19 Apr 2017

Chinese philanthropist Charles Chen Yidan, the retired co-founder of internet giant Tencent Holdings, is looking to expand his portfolio of technology, media and telecommunications investments through the latest fundraising initiative of Chinasoft International.

Hong Kong-listed information technology services provider Chinasoft said in a regulatory filing on Wednesday that it has agreed to issue HK$900 million in convertible notes due in 2022 to Dan Capital Management, in which Chen is the substantial shareholder and founding investor.

“The technology, media and telecommunications industry is a key investment focus of the subscriber,” Chinasoft said.

Cayman Islands-based fund management firm Dan Capital is “committed to conducting long-term investment in the company”, it said. “In this convertible notes fundraising, Mr Chen will also be a major subscriber.”

Chen will have beneficial ownership of HK$540 million of the convertible notes upon completion of the subscription on or before May 18.

The technology, media and telecommunications industry is a key investment focus of the subscriber

Chinasoft statement

That interest by Chen, who is an adviser emeritus at Tencent and honorary chairman at its corporate charity fund, appears to show that his entrepreneurial acumen remains sharp, following his retirement in 2013 from his role as chief administrative officer at the world’s largest online games company by revenue and China’s top social messaging services provider.