Prosus to Sell 2% Stake in Tencent, Worth $15.5 Billion -- Update
--Prosus plans to cut stake in Chinese tech giant to 28.9% from
--Move by Dutch internet conglomerate allows it to pursue fresh
investments, buy own stock
--Prosus has committed not to sell further Tencent shares for at
least three years
By Adria Calatayud
Prosus NV said Wednesday that it plans to cut its stake in
Tencent Holdings Ltd. to 28.9% from 30.9%, selling shares worth
The Dutch internet conglomerate, a subsidiary of South Africa's
Naspers Ltd., said it intends to sell up to 191.9 million shares in
Tencent. Naspers was one of the Chinese tech giant's earliest
Tencent shares fell 3.8% to 629.5 Hong Kong dollars ($80.95) on
Wednesday. Based on Tencent's closing price, the share sale would
be worth $15.53 billion.
Prosus said the parcel of Tencent shares will be offered to
institutional investors globally, with books expected to close
prior to the Hong Kong market opening.
Prosus said Tencent understands and supports its intention.
The company said its commitment to Tencent remains steadfast,
but that the sale of a small portion of its shareholding will allow
it to fund continued growth in online classifieds, food delivery,
payments and fintech, education and e-commerce, as well as allow
for complementary acquisitions.
"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 Chief Executive Bob van Dijk said. The company has committed
not to sell any further Tencent shares for at least the next three
years, it said.
The move comes shortly after the expiry of a lock-up agreement
following a similar share sale by Naspers in March 2018, which
landed it close to $10 billion. At the time, Naspers reduced its
stake in the Chinese company to 31.2% from 33.2%.
Write to Adria Calatayud at email@example.com
(END) Dow Jones Newswires
April 07, 2021 05:55 ET (09:55 GMT)
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