Tencent Holdings Ltd., a Chinese technology to entertainment company, is mulling a bid for part of Singaporean investment holding company Temasek Holdings Pvt. Ltd.’s stake in Hong Kong-based A.S. Watson, a health and beauty retail company.
Temasek is considering divesting about a 10 percent stake in A.S. Watson, a subsidiary of Kong Kongese investment holding company Hutchison Whampoa Ltd., for approximately $3 billion.
Tencent Holdings could team up with some investment funds to make an offer for the stake in A.S. Watson.
Temasek is working with an adviser to explore options for its 25 percent holding in A.S. Watson. The company acquired the stake in A.S. Watson for $5.6 billion in 2014.