Prosus NV, an Amsterdam-based tech investor, announced on Thursday that it netted $14.6 billion overnight from selling a 2% stake in Tencent.
A filing from Tencent at the Hong Kong Stock Exchange showed that Prosus sold 191.89 million shares at HK$595.00 per share, in what reports say may have been the largest block trade in history.
After the deal was completed, Prosus Chairman Koos Bekker released a statement where he said: “our belief in Tencent and its management team is steadfast, but we also need to fund continued growth in our core business lines and emerging sectors,”
Prosus, which is majorly owned by Naspers of South Africa, saw its stake in Tencent reduced from 30.9% to 28.9%. However, the firm has committed to keeping its stake at that level, without selling any more of it for the next three years.
“The proceeds of the sale will increase our financial flexibility, enabling us to invest in the significant growth potential we see across the group, as well as in our own stock,” Prosus CEO Bob van Dijk commented.
Tencent Chairman Pony Ma confirmed the sale and reiterated that he viewed Prosus as a “committed strategic partner over a great many years”. He also added that “Tencent respects and understands” the firm’s decision to sell.
Headquartered in Shenzhen, Tencent holdings is one of the biggest companies in China. The conglomerate deals mostly in internet-related services and products, including video games and social media. Tencent, though not a household name outside of China, made its way to he headlines of international news, as it confronted the Trump administration over a certain executive order which banned US firms from entering business dealings with its social media subsidiary, WeChat.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.