WeChat ban hangs over Tencent loan

摘要

A US ban on transactions with TENCENT HOLDINGS related to messaging service WeChat has given lenders pause for thought on an otherwise routine acquisition loan for the Chinese tech giant. Tencent, WeChat's parent company, is in talks with banks to borrow around US$400m to fund its proposed US$1.3bn takeover of Hong Kong-listed video-game developer LEYOU TECHNOLOGIES HOLDINGS. Though the financing is small fry for a company the size of Tencent - it earned US$400m every 7.5 days in the second quarter -it comes as the US administration is ramping up pressure on Chinese technology companies. Leyou granted Tencent three-month exclusivity on July 10 and said on August 7 that Tencent had commenced due diligence on a takeover and delisting of the company.