Prosus nets $14.6 billion from sale of Tencent stake By Reuters


© Reuters. FILE PHOTO: FILE PHOTO: A Tencent logo can be seen on its booth at Beijing 2020 Beijing International Trade Show for Services (CIFTIS)

By Toby Sterling and Scott Murdoch

AMSTERDAM (Reuters) – Amsterdam-based technology investor Prosus (OTC 🙂 NV raised $ 14.6 billion from the sale of a 2% stake in Tencent Holdings (OTC 🙂 Ltd, the Chinese gaming and social company said Media giant in one of the world’s largest block trade of all time.

“Our trust in Tencent and its management team is unwavering, but we also need to fund further growth in our core and emerging sectors,” Prosus chairman Koos Bekker said in a statement after the deal on Thursday.

In a statement on the Hong Kong Stock Exchange, Tencent said Prosus sold 191.89 million shares for HK $ 114.1 billion, reducing its stake to 28.9%.

This equates to HK $ 595 ($ 76.44) per share, at the top of an indicative range of HK $ 575 to HK595 that was set when Prosus announced its intention to sell its stake in an accelerated offering on Wednesday afternoon .

The price was a 5.5% discount on Tencent’s Wednesday closing of HK629.50. Tencent stock, which is up 10% this year, fell 2.5% on Thursday after the news in Hong Kong.

The block trade – a deal in a large number of stocks – was the largest Tencent stock since 2018, when Naspers sold 2% of the group for $ 9.8 billion, Refinitive data showed.

Prosus also invests in online food delivery platforms, classified marketplaces and digital payments companies.

For the six months ended September 30, core earnings were reported to have increased 29% to $ 2.2 billion as the proceeds from Tencent’s stake offset losses at other online holdings.

Citigroup Inc (NYSE :), Morgan Stanley (NYSE 🙂 and Goldman Sachs Group Inc (NYSE 🙂 were joint global sales coordinators.

($ 1 = 0.8425 euros)

($ 1 = 7.7849 Hong Kong dollars)

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