© Reuters. FILE PHOTO: FILE PHOTO: Tencent logo seen at its booth at the 2020 China International Trade in Services Fair (CIFTIS) in Beijing
By Toby Sterling and Scott Murdoch
AMSTERDAM (Reuters) – Technology investor Prosus (OTC 🙂 NV based in Amsterdam earned $ 14.6 billion from the sale of a 2% stake in Tencent Holdings (OTC 🙂 Ltd, a media giant. Chinese social and game said, in one of the largest block deals in the world ever.
“Our belief in Tencent and its management team is solid, but we also need to finance continued growth in our core businesses and emerging sectors”, Prosus President Koos Bekker said in a statement after the agreement was finalized on Thursday.
In a Hong Kong Stock Exchange filing, Tencent said Prosus sold 191.89 million shares for HK $ 114.1 billion, reducing its ownership to 28.9%.
That works out at HK $ 595 ($ 76.44) per share, the highest in the specified range from HK $ 575 to HK $ 595 given when Prosus announces his intentions. sell shares in a quick offering on Wednesday afternoon.
Prices are down 5.5 percent from Tencent’s Wednesday close of $ HK629.50. Shares of Tencent, up 10% so far this year, fell 2.5% in Hong Kong on Thursday following the news.
Block trading – trading in massive amounts of stock – was the biggest deal in Tencent stock since 2018 when Naspers sold 2 percent of the corporation for $ 9.8 billion, Refinitiv data shows.
Prosus also invests in online food delivery platforms, sorting markets, and digital payment businesses.
For the half year ending September 30, the company reported a 29% increase in main income to $ 2.2 billion, as proceeds from Tencent stake offset losses from other online interests. .
Citigroup Inc (NYSE :), Morgan Stanley (NYSE 🙂 and Goldman Sachs Group Inc (NYSE 🙂 is the general global coordinator for sales.
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