FILE PHOTO: Logo of Tencent is displayed at a news conference in Hong Kong, China March 22, 2017. REUTERS/Tyrone Siu

OSLO (Reuters) - China's Tencent Holding Ltd 0700.HK has agreed to buy a 29% stake in Oslo-listed computer games developer Funcom FUNCOM.OL, becoming the biggest shareholder, Funcom said on Monday.

Tencent, itself a major distributor of online games, bought the shares from KGJ Capital AS at a 21.8% premium over Friday’s closing price, valuing Funcom at 1.22 billion Norwegian crowns ($134.33 million).

Based in the Netherlands, Funcom is the developer of a range of online games, including adaptations of the ‘Conan the Barbarian’ franchise.

“The insight, experience and knowledge that Tencent willbring is of great value to us and we look forward to working closely with them,” Funcom Chief Executive Rui Casais said in a statement.

Funcom’s shares rose by 23% in early trade, hitting a 10-week high of 15.95 Norwegian crowns.