Tencent buys stake in Dianping

Tencent, one of China's biggest Internet companies, confirmed on Wednesday that it had purchased shares in restaurant rating and group buying website Dianping. In a filing to the Hong Kong stock exchange, Tencent said it had subscribed to newly issued shares in Dianping. It also holds an option to purchase an additional 5% of Dianping within a year, when the latter launches its initial public offering overseas, according to the statement. Tencent did not disclose the cost of the transaction, but China Business News reported on Monday that Tencent had paid 400 million U.S. dollars. Tencent made the announcement after the close of the Hong Kong stock exchange. Tencent shares closed at 582.5 HK dollars (75.2 U.S. dollars), down 0.34 percent on the day.