China's Tencent Close To Buy Supercell: Reports

(RTTNews) - Chinese internet giant Tencent Holdings Ltd. (TCEHY.PK) is reportedly very close to buy Finnish game maker Supercell Oy, which may value the maker of the popular "Clash of Clans" mobile game at more than $9 billion

WSJ reported that Tencent is in late-stage talks with SoftBank Group Corp. (SFTBF.PK) to buy the Japanese telecom giant's majority stake in the company. Tencent is also having discussions with several financial investors, including Hillhouse Capital Group, to join in the purchase as co-investors, the report says.

SoftBank had acquired the major stake in Helsinki-based Supercell for about $1.5 billion in 2013, and increased that to 73 percent last year. Supercell was valued at about $5.25 billion last year.

A deal of this kind would be the biggest by the Chinese company. The deal is expected to be announced as early as next week.

SoftBank would benefit from the sale as it would help buoy its balance sheet that has more than $80 billion in net debt.