Sanook acquired shares. Tencent announced 123 yesterday that it will acquire 49.9% stake in Sanook

Sanook acquired shares. Tencent announced 123 yesterday that it will acquire 49.9% stake in Sanook and assume its 50% shareholder loans. Equity and debt acquired at a total consideration of HK $ 81.7 million, the transaction will be in the form of cash Tencent internal resources. According to our calculations, the equity portion of the purchase consideration is not more than 11.0 times the 2010 fiscal year (fiscal year end of March) earnings. The transaction is expected to be completed next few weeks. Sanook is calculated by traffic 6th largest Internet company in Thailand. Sanook in January 2000 established in Thailand, Thai people 123 currently provide, including news, community services, entertainment, search and mobile value-added services, including a variety of Internet services. Prior to the acquisition, Sanook's parent company, Naspers, a wholly owned holding 123 company which holds Sanook99.8% stake. According to alexa.com data, sanook.com flow of about 94.8% from Thailand, in the classification by sub-domain, approximately 16.0% of traffic from sanook.com home side. Sanook in fiscal 2010 after-tax profit of HK $ 15.2 million yuan, more than the total equity of approximately HK $ 300 million negative. Tencent no obvious short-term profit contribution. We believe that this acquisition is part of the internationalization strategy of Tencent. As with the domestic 123 business model Sanook Sina, Sohu and other portals are more similar, I believe earnings will largely depend Sanook Thailand's economic growth. Sanook assumed in its 2011 fiscal year to obtain the 20% profit growth for the 2010 fiscal year earnings Tencent contributed 123 approximately 123 0.2%. I believe the short term, Tencent's earnings growth will not benefit from this acquisition. In the long term, we expect Tencent in terms of technical and operational support Sanook enable significant growth of earnings. reiterate our BUY rating. We maintain our positive view on the fundamentals of Tencent, looking forward 123 to this type of strategic acquisitions to drive profitable growth in the long term. From a global strategic perspective, the DST and the Sanook and Tencent acquisition of equity 123 interests are related to the holding company Naspers, we expect the two can share in the global mergers 123 and acquisitions more experience. Reiterate BUY and target price of HK $ 195.0.
2013 Baidu