SINGAPORE (Reuters) – Tencent Holdings, a Chinese social media and gaming company, agreed to convert its Class-B ordinary shares in Singapore-based gaming and ecommerce firm Sea Ltd into class A ordinary shares. The conversion will lower its voting power to below 10%.

Sea, a U.S. listed company, stated Tuesday that Tencent and its associates held a 21.3% share in the company. They had issued an irrevocable notification to convert all of their Class B ordinary shares.

Forrest Li is the founder, chairman, and CEO of Sea. With a market value of $124billion, it will convert all of its outstanding class B shares.

Tencent agreed also to end Li’s proxy after conversion.

Sea proposes to raise the voting power for each Class B ordinary share from 3 to 15.

The board stated, “Sea has advanced significantly in order to be a top global consumer internet company. It is in the best interest of the company to pursue its long-term expansion strategies and further clarify its capital structure via the envisaged changes.”

Sea failed to mention Tencent’s voting stake.

Sea stated that the proposed changes must be approved by shareholders at their annual general meeting, which is scheduled for February 14.

The company stated that the Class B ordinary shares Li has beneficially held will now account for 57% of voting power. This is an increase from the current 52%.

Li also holds 54% of total voting power in relation to Sea’s board composition and size.