Tencent (TCEHY) said that its board is pleased to announce that on June 21, the Consortium, which is formed in consultation with Supercell and currently wholly owned by the Company, has agreed to acquire a majority equity interest in Supercell through Buyer, the Consortium's wholly owned subsidiary.

The terms of the Transaction are set out in the conditional Share Purchase Agreement entered into on June 21 among SoftBank (SFTBF) Affiliates, certain Supercell Employee Shareholders and certain former employees of Supercell, Supercell, the Compan and Buyer. Under the terms of the conditional Share Purchase Agreement, Buyer will acquire from the Sellers their Supercell Vested Securities representing in total up to approximately 84.3% of Supercell's Securities.

The aggregate consideration, payable in three installments, is currently expected to be approximately $8.6B. Supercell is a private company incorporated in Finland and is a developer of mobile games for both tablets and smartphones on Apple's iOS and Google's Android operating systems.

The Company, in consultation with Supercell, is currently in discussions with potential co-investors who have expressed interest in investing in the Consortium. Upon the potential co-investors joining the Consortium, the Company currently expects to maintain a 50% voting interest in the Consortium through financial instruments. In accordance with the provisions of the relevant International Accounting Standards, the Company would then account for dividend or distribution of profit, if any, from the Consortium as dividend income in its income statement.

The Company's investment in the Consortium would not be consolidated or equity-accounted for by the Company.