Tencent expands health care investments in $500m Hillhouse deal

Chinese conglomerate continues to diversify amid weakness in entertainment sector

20191011 CHINA TENCENT

Tencent, the No. 1 gaming publisher in China and owner of widely popular instant messaging app WeChat, has been shifting its focus away from its core entertainment business. © AP

COCO LIU, Nikkei staff writer

HONG KONG -- Chinese tech powerhouse Tencent Holdings, which in recent years has taken stakes in hundreds of companies worldwide, is continuing its shopping spree with a planned $500 million investment in Hillhouse Capital's retail pharmacy business.

The transaction would put a valuation of $2.5 billion on the Asia-focused private equity firm's health care arm, according to a person with direct knowledge of the matter.

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