Tencent Holdings Limited (SEHK:700) entered into an agreement to acquire additional 11.54% stake in DouYu International Holdings Limited (NasdaqGS : DOYU) from Shaojie Chen for approximately $500 million on August 13, 2020. Under the terms, 3.7 million ordinary shares will be acquired at a price of $135 per ordinary share. The transaction is subject to approval by shareholders of DouYu and other customary closing conditions.

The closing of the transaction will take place immediately before the closing of the merger of DouYu and HUYA Inc. (NYSE : HUYA) or on an earlier date as may be determined. Frank Sun, Benjamin Su, Zheng Wang, Christopher Drewry, Greg Roussel, Ji Liu, Bradley Faris, Alex Cohen, Paul Dudek, Brian Miller, Hanno Kaiser, Héctor Armengod, Patrick English, Michelle Carpenter and Samuel Weiner of Latham & Watkins (Hong Kong and Latham & Watkins LLP acted as legal advisors to Tencent. Morgan Stanley & Co.

LLC acted as a financial advisor to the special committee of the board of directors of DouYu International Holdings Limited. Weil, Gotshal & Manges LLP acted as a legal advisor to Morgan Stanley & Co. LLC.