Bilibili, a Shanghai-based online video and gaming platform, plans to issue US$700 million in convertible senior notes due 2031, alongside a secondary placement of Class Z ordinary shares and related buybacks to limit potential dilution, in a Hong Kong stock exchange filing.

Tencent, through a subsidiary, will subscribe for US$200 million of the notes on the same terms as other investors.

The share placement will include about US$400 million of existing Class Z ordinary shares held by Tencent, through a subsidiary, and certain shares borrowed from unaffiliated third parties.

Bilibili said it will repurchase about US$100 million of the borrowed shares to limit the potential dilutive effect of note conversion, and US$200 million of Tencent-held existing Class Z ordinary shares, in both cases at the placement clearing price.

Separately, Bilibili announced a US$300 million share repurchase program.

🔗 Source: Yicai

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