Kuaishou Technology (HKG:1024) said an initial group of investors agreed to inject 13.8 billion yuan into its Beijing Kling unit, which houses the group's Kling AI-related assets and businesses, under a capital increase agreement, according to a Thursday Hong Kong bourse filing.
The company said that additional investors simultaneously signed joinder agreements to invest an additional 5.22 billion yuan.
The financing could expand to as much as 20.5 billion yuan if additional investors join within the subscription period.
Kuaishou also adopted employee share participation schemes for Beijing Kling and approved a restructuring to consolidate its Kling AI-related assets and businesses under the unit.
If the subscription limit and employee equity schemes are fully implemented, Kuaishou's interest in Beijing Kling would be diluted to about 68.3% from 100%, while the unit would remain a consolidated subsidiary.
The filing identified entities controlled by Tencent (HKG:0700), a substantial shareholder of Kuaishou, as participants in the investment.
It also listed Hangzhou AliCloud Apsara Information Technology, an indirect wholly owned subsidiary of Alibaba (HKG:9988), among the independent investors.