Asian Tech Press -- China's tech giant Tencent Holdings Ltd.s has proposed to buy British game Sumo Group plc in a deal that valued the firm at 919 million pounds ($1.27 billion), according to Reuters.

Tencent has offered to buy Sumo Group for 513 pence per share in cash, a 43.3% premium to Sumo's closing price of 358 pence on July 16, market sources said.

According to the announcement, the boards of Tencent and Sumo Group have agreed on the terms of the proposed all-cash acquisition deal. On a fully diluted basis, the offer values Sumo's shares at about £919 million.

Goldman Sachs and Zeus Capital advised the Sumo Board on the financial terms of the acquisition.

Public information shows that Tencent acquired a 9.96% stake in Sumo in November 2019 with a total investment of approximately £23.1 million, making it the second largest shareholder in the company.

Sumo's share price has now soared by over 40% to 510 pence.