Tencent Holdings Limited (SEHK:700) is studying a potential deal for NEXON Co., Ltd. (TSE:3659), as the Chinese internet giant looks for ways to bolster its lucrative gaming operations, people with knowledge of the matter said. Shenzhen-based Tencent has reached out to the family of Nexon?s late founder Kim Jung-ju to discuss the possibility of an acquisition, the people said, asking not to be identified because the information is private. Kim?s family has been speaking to advisers and evaluating options, according to the people.
Kim?s relatives hold their stake through family investment firm NXC Corp., which ? together with affiliated unit NXMH BV ? owned 44.4% of Nexon as of June 30, according to Nexon?s interim report.
Kim?s wife and daughters own about 67.6% of NXC. It?s unclear how receptive NXC is to a sale of the Nexon holding, and there?s no certainty Tencent?s deliberations will lead to a transaction, the people said. The structure of any deal hasn?t been finalized, they added.
A representative for Tencent didn?t respond to a request seeking comment, while Nexon and NXC declined to comment.
