China's Tencent may acquire 15 per cent stake in Patimas this week

Tencent Holdings Ltd, one of China's largest Internet company, is expected to acquire a 15 per cent stake in loss-making Patimas Computers Bhd this week.

According to a news report in local Chinese daily China Press, citing sources, it said that the deal could happen this Wednesday (June 12).

The news report, which appeared on June 9, does not say if Tencent would acquire the stake directly or via another vehicle.

Earlier this year, there were reports that Tencent purchased a 5 per cent stake in Patimas via China Private Equity Investments Holdings Ltd.

Tencent Holdings, based in Nanshan district, Shenzhen, operates the well-known instant messenger Tencent QQ and runs one of the largest web portals in China -- QQ.com. It also runs the currently popular WeChat instant messenger.

In 2010, the company recorded 647.6 million active Tencent QQ instant messenger user accounts, making it the world’s largest online community at the time.

Tencent shares on the Hong Kong Stock Exchange is currently trading at the HKD299 level -- valuing the company at over HKD555 billion (RM221.55 billion).

Patimas, a PN17 status company, has seen its stock price hovering around the 4-6 sen level over the past four weeks.

For the financial year ended March 31, 2013, the company posted a revenue of RM26.99 million, with a net loss of RM34.26 million.