Business, Security, Software

Kingsoft Chairman Buys Additional 2.5% Stake For HKD190 Million

Lei Jun, chairman of Kingsoft, has reportedly bought an additional 2.5% stake in the company for about HKD190 million.

According to a report published by Kingsoft, upon the completion of the acquisition, Lei will become the largest individual shareholder of Kingsoft, replacing Tencent.

The report said that Lei will buy 29.325 million Kingsoft shares from Tencent, accounting for 2.5% of the total issued shares of the company. The price is HKD6.5 per share, totaling HKD190 million. The transaction is expected to be completed before April 18, 2013.

On the completion of the deal, Lei's stake in Kingsoft will increase from 12.39% to 14.89%; while Tencent's stake will decrease from 15.19% to 12.7%.

Kingsoft said that the acquisition is an advantageous move for Lei to play his management role in business operation of Kingsoft. Kingsoft is engaged in security software, office software, online games, and cloud computing.

In July 2011, Tencent purchased a 15.68% stake in Kingsoft for HKD890 million, making it the controlling shareholder of this Chinese software provider.

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