Tencent in Talks Over $1.5 Billion Loan

HONG KONG—Tencent Holdings Ltd. is in talks for a $1.5 billion syndicated loan to secure funds for future acquisitions and other expenses, according to people familiar with the matter.

The loan for China's biggest social networks and online games company, is being arranged by five banks -- Australia & New Zealand Banking Group, Bank of China, Citigroup, HSBC Holdings and Mizuho Financial Group—according to the people.

Tencent's loan discussions come as China's biggest Internet companies are ramping up investments and acquisitions. Earlier this week, The Wall Street Journal reported that Tencent is near a deal to invest $1 billion in a new company created by the merger of Meituan.com and Dianping Holdings Ltd., whose apps connect users with restaurants, movie theaters and other services. Last month, online shopping giant Alibaba Group Holding Ltd. announced a $4.6 billion bid to turn online video provider Youku Tudou Inc. into a wholly owned unit.

Over the past few years, Tencent has invested in Chinese technology firms such as online-shopping company JD.com Inc. and 58.com Inc., which is similar to Craigslist of the U.S.

A Tencent spokeswoman declined to comment.

Write to Juro Osawa at [e-mail] and Kane Wu at [e-mail]

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(END) Dow Jones Newswires

November 06, 2015 04:35 ET (09:35 GMT)

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