JOHANNESBURG— Tencent Holdings Ltd. ‘s largest shareholder sells up to $ 14.7 billion worth of shares in the Chinese internet and video game giant and earns a lucrative technology bet in history after the pandemic boosted the sector.
Internet conglomerate Prosus NV said on Wednesday it plans to reduce its stake in Tencent to 28.9% from 30.9%, with the sale of about 192 million shares, to increase its financial flexibility to invest in growth companies. It is also the latest attempt to close a persistent gap between the company’s market value and that of its stake in Tencent.
In 2001, Prospers, Naspers Ltd, the largest listed company in Africa, paid $ 34 million for a third stake in Tencent before it was made public. Hong Kong-listed Tencent, the world’s largest revenue-generating video industry venture and manager of the popular WeChat-all app, is now China’s most valuable exchange-listed company with a market capitalization of $ 775.9 billion.
Prosus has priced its Tencent stake at 595 Hong Kong dollars per share, which is equivalent to $ 76.43, a person familiar with the matter said in Hong Kong on Thursday morning. It was the peak of an earlier series and represented a 5.5% discount to Tencent’s Wednesday closing price. People familiar with the matter had lined up even before the launch of the offer to buy about three-quarters of the shares.
Prosus said Tencent understands and supports its intent. A Tencent spokesman declined to comment further.