Chinese Internet company Tencent Holdings Limited has announced that it will invest USD26.95 million to acquire 49% of the issued shares of Level Up.

Meanwhile, under the option agreement signed by the two parties, Tencent has the ability to spend USD9.9 million to increase its stake in Level Up to 67%.

Founded in Singapore, Level Up is a wholly-owned subsidiary of Naspers, which is one of Tencent's major shareholders and principally operates online game business in Brazil and Philippines with operating experiences of nine years. According to the unaudited financial report of Level Up, by November 30, 2011, the company's consolidated assets value was USD32.3 million, which was about HKD251.3 billion; and its net assets value was USD19 million, which was about HKD147.8 million.

Tencent said that the investment in Level Up is in line with its long-term strategy. As its cooperative partner, Level Up will be able to help Tencent form a market platform in Brazil and Philippines, which will benefit its seeking of opportunities in the online game sector.