China-based software giant Kingsoft announced that it will divest $20 million worth of shares of Westhouse, a subsidiary. The said shares will be bought by Chinese smartphone manufacturer Xiaomi, according to Tech In Asia.

Under the terms of the said deal, Xiaomi will acquire a 4.7% holding in Westhouse, an online game developer based in China. The goal of the strategic investment, however, is not yet clear. Xiaomi is a mobile firm, but Westhouse is PC-based. The latter currently has six titles, with Jian Wang 3 being the most popular. Various smarphone and tablet games are being managed by Kingsoft and some of its other subsidiaries, the report detailed.

Kingsoft's announcement read: "Westhouse Group and Xiaomi will further explore the opportunity of cooperation in the area of mobile games. Whereby Xiaomi would be a strategic distribution partner of Westhouse Group's mobile games."

In late 2012, Xiaomi also made an investment in Kingsoft. The smartphone maker acquired an almost 10% stake in the cloud computing unit of the software company, Tech In Asia reported.