JOHANNESBURG— The largest shareholder of Tencent Holdings Ltd. sells up to $ 14.7 billion worth of shares in the Chinese internet and video gaming giant, cashing in on one of the most lucrative technology bets in history after the pandemic boosted the industry.
Internet conglomerate Prosus NV said on Wednesday that it plans to reduce its stake in Tencent from 30.9% to 28.9% by selling approximately 192 million shares to increase its financial flexibility to invest in growth stocks. It is also the latest attempt to narrow a persistent gap between the company’s market value and that of its stake in Tencent.
In 2001, Prosus’ parent company, Naspers Ltd., Africa’s largest publicly traded company, paid $ 34 million for a one-third stake in Tencent before going public. Hong Kong-listed Tencent, the world’s largest video game company by revenue and operator of the popular WeChat everything app, is now China’s most valuable publicly traded company with a market capitalization of $ 775.9 billion.
Prosus has priced its share of Tencent at $ 595 Hong Kong per share, the equivalent of $ 76.43, a person familiar with the matter said Thursday morning in Hong Kong. That was the top of a previous run and represented a 5.5% discount on Tencent’s closing price on Wednesday. Even before the launch of the offering, investors lined up to buy about three-quarters of the stock, people familiar with the matter said.
Prosus said Tencent understands and supports its intent. A Tencent spokesman declined to comment further.