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South African Company Holds Shares in Tencent

Tencent is a Chinese investment holding company that holds major stakes in League of Legends (LoL) developer, Riot Games.

According to Tencent’s key events in its 2011 Interim Report, “On 18 February 2011, the Group acquired a majority equity interest in Riot Games, Inc. (Riot Games), a US-based independent developer and publisher of premium online games, for a cash consideration of USD231,465,000 (R2 533 546 450.50) together with other cash and non-cash consideration.

Before the Riot Games acquisition, Tencent already had 22.34 percent shares. At the moment of acquisition, Tencent boosted their shares to 92.78 percent, becoming a majority shareholder in the company.

Naspers is a South African company that holds shares in many larger multinational companies such as Mweb, DSTV, MultiChoice and SuperSport. As of Novemeber 2013, Naspers has 34 percent shares in Tencent.

Does this make Naspers a majority shareholder in Riot Games? No. Although Naspers has shares in Tencent, and is able to vote on changes being made to Tencent, they are not a shareholder in Riot Games and cannot vote on changes there.

Although a South African LoL server is a long time coming, it would have been nice if a company from South Africa had shares within such a large and successful company.

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