© Reuters. FILE PHOTO: FILE PHOTO: A Tencent logo can be seen on its booth at Beijing 2020 Beijing International Trade Fair for Services (CIFTIS)
By Scott Murdoch and Toby Sterling
HONG KONG (Reuters) – Dutch tech investor Prosus (OTC 🙂 NT sold a 2% stake in Chinese tech giant Tencent at HK $ 595 per share to raise $ 14.7 billion for the world’s largest block trade The reason.
The sources could not be named because the information had not yet been published.
Prosus and Tencent did not immediately respond to a request for comment.
Prosus, majority-controlled by Naspers Ltd, sold 191.8 million Tencent shares to increase its stake from 30.9% to 28.9%, according to a statement from Prosus.
The share sale was marked at HK $ 575 to $ HK595 per share, and the initial investor forecast was set at HK $ 585 before moving to the top of the range, according to a source.
At HK595 per share, the price was 5.5% below Tencent’s Hong Kong closing price, which traded at HK629.50 on Wednesday. Tencent shares are trading 10% higher so far in 2021.
“The proceeds from the sale increase our financial flexibility and allow us to invest in the significant growth potential we see across the Group as well as in our own stocks,” said CEO Bob van Dijk in a statement on Wednesday.
The sale is likely to be the biggest block trade of all time based on refinitive data.
In addition to its stake in Tencent, Prosus owns or invests in online grocery delivery platforms, classified marketplaces and digital payments companies.
For the six months ended September 30, Prosus reported a 29% increase in core earnings to $ 2.2 billion as revenue from Tencent losses was offset in its other online businesses.
“We expect the news to be viewed cautiously until there is more clarity on how the funds will be reallocated,” Renaissance Capital analysts said in a note.
Analysts said they did not expect the sale in the short term to narrow the gap between Prosus’ own market value of 160 billion euros ($ 189.92 billion) and the market value of its stake in Tencent, worth 200 billion euros would lead on Wednesday.
Citigroup (NYSE :), Goldman Sachs (NYSE 🙂 and Morgan Stanley (NYSE 🙂 were the joint global coordinators of the share sale.
The biggest block trade to date was also a sale of 2% of the Tencent shares then held by Naspers for $ 9.8 billion in 2018, Refinitiv data showed.
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