By Yifan Wang

Leyou Technologies Holdings has entered into a privatization exclusivity agreement with a subsidiary of Chinese internet giant Tencent Holdings, it said Friday.

Gaming development company Leyou and its controlling shareholder, Yuk Kwok Cheung, have agreed to grant Tencent Mobility Ltd. an exclusivity period on potentially acquiring and privatizing Leyou.

The period is expected to last three months from the date of the agreement unless Tencent notifies Leyou and Mr. Yuk that it is no longer considering the deal.

During the exclusivity period, Leyou and Mr. Yuk will be bound by restrictions including not transferring company shares, disposing of assets or engaging negotiations with other potential buyers.

Leyou has applied for its shares to resume trading on Monday, after trade was halted this morning ahead of the announcement. 



  Write to Yifan Wang at yifan.wang@wsj.com