Tencent announced plans to increase its equity voting interest in mobile games developer Supercell’s holding company, a move which will bring it under the direct control of the Chinese giant.
In a filing to the Hong Kong Stock Exchange, Tencent stated it intends to grow its equity voting interest from 50 per cent to 51.2 per cent, giving it majority control of the consortium which holds an 82.2 per cent stake in Supercell.
The Luxembourg Societe Anonyme consortium was formed in June 2016 for the sole purpose of acquiring Supercell shares, said Tencent. It comprises of Tencent and other investors.
Supercell owns popular games, such as Clash of Clans and Clash Royale, but had a difficult time in 2018 when it reported a 26 per cent decline in profit year-on-year.
However, Tencent also faced struggles in the gaming sector: Sensor Tower data for Q2 showed the company lost ground to less well-known rivals, resulting in it falling out of the top-five ranking of global app publishers.Subscribe to our daily newsletter Back