EM ASIA CREDIT: Tencent: Tencent Music acquires Ximalaya
(TENCNT, A1neg/A+/A+)
Tencent Music Entertainment group (A2neg/A/A-), a subsidiary of Tencent Holdings (A1neg/A+/A), announced after close that it has entered into an agreement to merge with one of China's largest online auto platforms, Ximalaya Inc. (NR). Tencent's interest in Ximalaya was rumoured back in April. The transaction values Ximalaya at around $2.4bn, the offer being $1.26bn in cash and the rest in shares (max. 5.2% of Tencent Music shares). The transaction is pending regulatory approval. Overall positive bias for spreads given the expected improvement in business profile, and small transaction size (Tencent Music market cap. $28bn).
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