JOHANNESBURG – Tencent Holdings Ltd.’s largest shareholder sells up to $ 14.7 billion worth of shares to Chinese internet and video game giant, earning one of the most profitable technology bets in history after the pandemic boosted huge sector.
Internet conglomerate Prosus NV said on Wednesday that it intends to reduce its stake in Tencent to 28.9% from 30.9%, selling about 192 million shares, to increase its financial flexibility to invest in start-ups. growth. It is also the latest attempt to bridge a persistent gap between the company’s market value and its stake in Tencent.
In 2001, Father Prosus, Naspers Ltd., Africa’s largest listed company, paid $ 34 million for a third of its stake in Tencent before it went public. Tencent, listed in Hong Kong, the largest video game company in the world, made by revenue and operator of the popular WeChat do-everything application, is now the most valuable listed company in China, with a market capitalization equivalent to 775 , $ 9 billion.
Prosus priced its Tencent shares at $ 595 Hong Kong per share, the equivalent of $ 76.43, a person familiar with the matter said in Hong Kong on Thursday morning. This was the peak of a previous range and represented a 5.5% reduction compared to Tencent’s closing price on Wednesday. Even before the offer was launched, investors had lined up to buy about three-quarters of the shares, people familiar with the matter said.
Prosus said Tencent understands and supports its intention. A Tencent spokesman declined to comment further.