As part of an effort to push its mobile payment app as deeply into retail as possible, China-based Tencent Holdings has increased the size of its minority ownership of a shopping mall and logistics developer.
“Tencent’s deepening ties with China South City Holdings could create a bigger challenge for Chinese e-commerce market leader Alibaba Group Holding Ltd., which last week went public in the U.S. in a $25 billion initial public offering. Alibaba’s IPO dethroned Tencent as Asia’s biggest Internet company by market value,” noted The Wall Street Journal.
Tencent’s new ownership level will now be 11.55 percent, the story said.
“Tencent’s decision to pay 822.6 million Hong Kong dollars (US$106.1 million) to raise its stake from 9.9 percent follows their agreement in June on a strategic partnership, which involves plans to launch an outlet mall where consumers can use the mobile payment feature on Tencent’s WeChat messaging app for shopping. Tencent bought the initial stake in January,” the Journal said.