(Yicai Global) May 12 -- The chief executive officer of Blackshark Technologies has denied that Chinese internet giant Tencent Holdings is planning to buy China’s leading maker of gaming phones, according to 21st Century Business Herald.

Blackshark’s acquisition was never a thing, as the company is looking for financing opportunities, 21st Century reported today, citing CEO Luo Yuzhuo. The Xiaomi-backed firm will continue to focus on gaming phones and will not switch to the augmented and virtual reality fields, he said.

In January, Tencent was rumored to buy Blackshark for CNY2.6 billion (USD407.9 million). After the acquisition, the Nanchang-based startup, which sells phones under the Black Shark brand, was supposed to merge into the business group led by Ren Yuxin, chief operating officer at Tencent, and start producing VR devices. But the pair never commented on the matter.

Luo’s statement came after 21st Century learned from a source familiar with the matter that Tencent had scrapped plans to buy Blackshark because it did not get the regulatory approval.

Founded in August 2017, Blackshark is a hardware manufacturer mainly focused on game phones. Chinese handset giant Xiaomi’s unit Tianjin Venture Capital is the controlling shareholder with a 46.4 percent stake in Blackshark, according to corporate information platform Tianyancha.

Editor: Futura Costaglione