JOHANNESBURG— The major shareholder of Tencent Holdings Ltd. sells shares worth up to $ 14.7 billion to the Chinese internet and video game giant, achieving one of the most lucrative technology bets in history after the pandemic that gave the sector a big boost.
Internet conglomerate Prosus NV said Wednesday it plans to reduce its stake in Tencent from 28.9% to 30.9%, selling about 192 million shares, to increase its financial flexibility to invest in growth companies. It is also the latest attempt to bridge a persistent gap between the company’s market value and that of its stake in Tencent.
In 2001, the parent company of Prosus Naspers Ltd., Africa’s largest listed company, paid $ 34 million for a third of the stake in Tencent before it was made public. Tencent, listed in Hong Kong, the world’s largest revenue-generating video game company and operator of the popular WeChat do-everything app, is now China’s most valuable listed company with a market capitalization equivalent to 775.9 billion dollars.
Prosus quoted its Tencent shares at $ 595 Hong Kong per share, the equivalent of $ 76.43, a person familiar with the matter said Thursday morning in Hong Kong. This was the top of a previous range and represented a 5.5% discount on Tencent’s Wednesday closing price. Even before the offer was launched, investors had been trained to buy about three-quarters of the shares, people familiar with the matter said.
Prosus said Tencent understands and supports its intent. A Tencent spokesman declined to comment further.