Johannesburg — Tencent Holdings Ltd.’s largest shareholder has sold up to $ 14.7 billion worth of shares in China’s Internet and video game giant, the most profitable technology in history after a pandemic has given a big boost to the sector. I’m taking advantage of one of my bets.
Internet conglomerate Prosus NV said Wednesday that it plans to reduce Tencent’s stake from 30.9% to 28.9% and sell about 192 million shares, giving it more financial flexibility to invest in growth ventures. This is also the latest attempt to close the permanent gap between the market value of the company and the market value of Tencent’s stock.
In 2001, Naspers Ltd., the parent company of Prosus, Africa’s largest publicly traded company, paid $ 34 million before going public for one-third of Tencent’s stake. Hong Kong-listed Tencent, the world’s largest video game company with revenue and operators for the popular We Chatdo-everything app, is currently the most valuable listed company in China with a market capitalization of $ 775.9 billion.
Prosus said the price of its Tencent shares would be worth HK $ 595 and $ 76.43 per share, a person familiar with the matter said in Hong Kong Thursday morning. This is the top of the previous range, representing a 5.5% discount on Tencent’s Wednesday closing price. Even before the start of the offering, investors were lined up to buy about three-quarters of the stock, people familiar with the matter said.
Prosus said Tencent understood and supported the intention. A Tencent spokesman declined to comment further.
Tencent’s Biggest Investor Invests in Pandemic Rally
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