Tencent Holdings Limited (SEHK:700) is close to removing Leyou Technologies Holdings Limited (SEHK:1089) from the stock exchange in a deal that would value the Chinese gaming company at around $1.3 billion, according to people familiar with the issue. The companies are discussing an offer price range of HKD 3.30 to HKD 3.40 for each Leyou share, people said, who asked not to be identified because the information is private. Leyou's main shareholder, Charles Yuk, plans to sell all his stake in the company, people said.

Yuk owned about 69% of the Hong Kong-listed company at the end of December, 2019 according to its latest annual report. Negotiations are at an advanced stage and an agreement could be announced this week, according to people. Conversations could still be delayed or crumbled and details, including offer price and schedule, have not been finalized, people said.

Representatives of Leyou and Tencent did not immediately respond to requests for comment.