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Tencent to take China's Sogou private in $3.5bn deal

China-based Sogou Inc executives ring the opening bell to celebrate their company's IPO at the New York Stock Exchange on Nov. 9, 2017.    © Reuters

Sogou Inc said on Tuesday it would be taken private by shareholder Tencent Holdings Ltd for $9 per share in cash, valuing the Chinese web search firm at about $3.5 billion.

U.S.-listed shares of the company were up about 3% in premarket trading.

The offer price represents a premium of 56.5% to Sogou's close on July 24, the last trading day before the Chinese tech giant sent a preliminary offer to take it private.

The move comes a day after Chinese social media platform Weibo's owner Sina Corp said it would be taken private in a $2.6 billion deal.

Many Chinese companies are exiting U.S. stock exchanges by considering go-private deals or returning to equity markets closer to home on rising tensions between the world's two largest economies.

(Reuters)

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