Chinese tech firm Tencent is considering a bid for Nexon’s holding company

Chinese tech firm Tencent is weighing up a bid for the holding company that controls South Korean gaming company Nexon.

Tencent is looking to enlist co-investors as it considers making a move to acquire the company, according to Reuters.

Private equity firms are looking at options for a potential deal, including taking the company private.

The founder of Nexon, Kim Jung-ju, plans to sell a controlling stake of 98.4 per cent in the holding company, NXC Corp, reports in South Korea claimed this month.

His stake in the company is reported to be worth between 8trn won and 10tr won (£5.52bn and £6.9bn).

Deutsche Bank and Morgan Stanley are running the sale, according to Reuters. The two banks declined to comment.

Tencent is the world’s largest gaming company by revenue and would be acquiring a rival in Nexon, which was founded in 1994 and has developed more than 80 live games in over 190 countries.