Game on: Exit Tencent, enter Tiga at Dream11

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Subscribe to enjoy similar stories. Mumbai: China's Tencent Holdings Ltd is set to sell its stake in Dream11 parent Sporta Technologies Ltd, two people familiar with the development said, as the gaming unicorn moves to comply with regulations on Chinese investments. Singapore-based Tiga Investment Pte Ltd will acquire Tencent's shares for over $150 million, the people cited above said on the condition of anonymity.

Mint could not ascertain Tencent's exact holding in Dream11 or the amount it plans to sell. “The transaction is being undertaken to comply with PN-3 filing," one of the people cited above said, referring to a government notification restricting investments from the northern neighbour. Investments from China came under a harsh glare after border tensions flared up in Ladakh in 2020.

Press Note-3 (PN-3) issued in April 2020 formalized the scrutiny, requiring government approval for investments from neighbouring countries. Also read | Every rejection taught us how to build our pitch: Dream11's Harsh Jain Although the latest Economic Survey appeared to make a pitch for Chinese foreign direct investment in select segments, government officials have since then clarified that there would be no letdown in scrutiny of Chinese FDI. Tencent and Tiga did not respond to requests for comment; Dream11 said it had no comment.