China's Tencent Holdings Ltd. bought a minority stake in independent French video game developer Don't Nod Entertainment SA for €30 million.

The acquisition is part of Don't Nod's launch of a capital increase of about €50 million. Tencent now indirectly owns 1,875,000 shares in Don't Nod, representing a 22.63% shareholding, with 16.61% voting rights, according to a Jan. 28 release.

The Chinese company had agreed to invest in Don't Nod through its subsidiary Proxima Beta Europe BV, Don't Nod said in a separate Jan. 27 release.

Don't Nod said the private placement was "largely oversubscribed," which allowed it to increase the offer amount to €50 million. The French company had initially planned an about €40 million capital increase. The game developer set the subscription price for new shares at €16 apiece.

Don't Nod issued a total of 3,125,000 new ordinary shares, or 37.7% of the company's share capital before the private placement, increasing the share capital to €165,726.86.

The new shares' settlement and delivery as well as admission to trading on the Euronext Growth Paris are set for Feb. 1.

Midcap / TP ICAP (Europe) was lead manager and bookrunner for the private placement, with CBR & Associés (François Le Roquais) was legal counsel and ACTUS finance & communication was financial communication adviser.