(Yicai Global) April 29 -- Bilibili has bought a 7.15 percent stake in game publisher China Mobile Games and Entertainment Technology Group, its second such investment in under a month, as the Chinese video-streaming platform turns to mobile gaming to shore up its earnings.
Shenzhen-based CMGE will sell its shares at HKD3 (USD0.40) each, a 17 percent discount on today’s closing price of HKD3.65, according to a filing made to the Hong Kong stock exchange today.
Together with two other subscribers, investment firm Wide Fortune and game operator Century Network who are buying 2.04 percent and 0.13 percent equity each, the sale is worth HKD851 million (USD109.6 million).
The proceeds will be used to further enhance its intellectual property-based game publishing and development business as well as supplement working capital, CMGE said.
Shanghai-based Bilibili will also be granted priority rights over some of CMGE's games and IPs, the filing said.
Earlier this month, Bilibili bought a 4.72 percent stake in game community TapTap developer XD Inc. for HKD960 million (USD123.7 million).
Bilibili’s stock price [NASDAQ:BILI] closed up 0.40 percent yesterday at USD120.64. CMGE’s share price [HKG:0302] closed down 0.27 percent today at HKD3.65 (USD0.47).
Editor: Kim Taylor