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

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© Reuters. FILE PHOTO: FILE PHOTO: A Tencent emblem is seen at its sales space on the 2020 China Worldwide Honest for Commerce in Providers (CIFTIS) in Beijing

By Toby Sterling and Scott Murdoch

AMSTERDAM (Reuters) -Amsterdam-based expertise investor Prosus (OTC:) NV on Thursday stated it netted $14.6 billion from its in a single day sale of a 2% stake in Chinese language gaming and social media big Tencent in one of many world’s largest ever block trades.

“Our perception in Tencent and its administration workforce is steadfast, however we additionally must fund continued progress in our core enterprise traces and rising sectors,” Prosus Chairman Koos Bekker stated in an announcement after the completion of the deal on Thursday.

In a Hong Kong Inventory Change submitting, Tencent stated Prosus bought 191.89 million shares for HK$595.00, lowering its stake to twenty-eight.9%.

The worth was a 5.5% low cost to Tencent’s Wednesday shut of $HK629.50. Tencent inventory, which is up 10% this 12 months, traded 2.5% decrease in Hong Kong on Thursday.

A ststement from Tencent Chairman Pony Ma stated he considered Prosus, which is majority-owned by Naspers of South Africa, as a “commited strategic companion over an incredible a few years”.

“Tencent respects and understands the (stake sale) determination,” he stated.

Prosus has dedicated to not lowering its remaining stake additional for the approaching three years.

The block commerce – a commerce of a lot of securities – was the most important since 2018, when Naspers bought 2% of the group for $9.8 billion, Refinitiv knowledge reveals.

Prosus additionally owns pursuits in on-line meals supply platforms, categorized marketplaces and digital funds companies.

For the half-year to Sept. 30 it reported a 29% improve in core earnings to $2.2 billion, with proceeds from its Tencent stake offsetting losses from different investments.

The sale of the Tencent stake barely closed a niche between the valuation of Prosus itself, with a market capitalisation of 160 billion euros, and the worth of its remaining Tencent stake, price about 188 billion euros on Thursday.

“When the low cost strikes in the appropriate course we’re clearly pleased, however we’re not proud of the place it’s,” CEO Bob van Dijk instructed reporters.

He stated progress on the firm’s different companies would “alleviate the low cost over time”.

Citigroup (NYSE:), Morgan Stanley (NYSE:) and Goldman Sachs (NYSE:) have been joint international coordinators for the sale.

($1 = 0.8425 euros)

($1 = 7.7849 Hong Kong {dollars})

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