Chinese gaming titan Tencent Holdings is considering an offer for the holding company that controls South Korean gaming company Nexon, two sources with knowledge of the matter told Reuters.
Tencent is seeking to list the co-investors, the sources said. One of the sources also said that private equity firms are studying options for a deal, including the publicly traded private company.
Nexon founder Kim Jung-ju plans to sell a 98.64 percent controlling stake in Nexon’s firm NXC Corp, which he and other related parties including his wife reported this month in the Korea Economic Daily newspaper.
The stake is worth between KRW 8 trillion and KRW 10 trillion ($ 7.1 billion and $ 8.9 billion), according to reports from the Korea Economic Daily and the Maeil Business Newspaper.
Deutsche Bank and Morgan Stanley are in charge of the sale, sources told Reuters.
Morgan Stanley declined to comment. Deutsche Bank was not immediately available for comment.
The Maeil business newspaper said Tencent chose Goldman Sachs as its advisor, citing unidentified sources. He added that other potential bidders include KKR & Co, TPG Capital, Carlyle Group and MBK Partners.
NXC and Tencent declined to comment.
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