Date
22 October 2017
China Innovationpay has scotched speculation that Tencent is seeking to take over the payment solutions firm. Photos: Xinhua
China Innovationpay has scotched speculation that Tencent is seeking to take over the payment solutions firm. Photos: Xinhua

China Innovationpay refutes rumors of Tencent deal

China Innovationpay Group Ltd. (08083.HK) has refuted rumors that internet giant Tencent Holdings Ltd. (00700.HK) is seeking to acquire a controlling stake in the company, the Hong Kong Economic Journal reported Friday.

The payment solutions firm was quoted as saying that its board has no knowledge of any potential change in control of the firm.

The comment came after Shenzhen Evening News reported that Tencent’s chairman Pony Ma has given the nod for acquisition of China Innovationpay.

Citing sources from Tencent, the report said the internet titan plans to raise funds by issuing new shares to buy a controlling stake in China Innovationpay.

China Innovationpay will be integrated into Tencent’s WeChat Business Group as a subsidiary, the report said, adding that the former’s listing status will be kept intact.

China Innovationpay rejected the report, saying in a stock-exchange filing that there are no agreements in place regarding the purported acquisition and that its board has no knowledge of any such matter.

The company’s shares will resume trading Friday following the statement.

Separately, New Oriental Education & Technology Group Inc. (NYSE: EDU) has unveiled a plan to establish a joint venture company with Tencent to develop mobile educational products.

Tencent’s rival Alibaba Group, meanwhile, is said to be in talks to invest in photo sharing app Snapchat and instant messaging app LINE.

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