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Tencent’s largest investor redeems pandemic rally

JOHANNESBURG – Tencent Holdings Ltd. ‘s largest shareholder sells shares of up to 14.7 billion. Dollars in the Chinese internet and video game giant and redeems one of the most lucrative technology reviews in history after the pandemic gave the sector a huge boost.

Boarding school conglomerate Prosus NV said Wednesday it plans to cut its stake in Tencent to 28.9% from 30.9% by selling about 192 million shares to increase its financial flexibility to invest in growth projects. It is also the latest attempt to narrow a persistent gap between the company’s market value and its stake in Tencent.

In 2001, Prosus’ parent company Naspers Ltd., Africa’s largest listed company, paid $ 34 million for a third of Tencent̵

7;s shares before it went public. Hong Kong-listed Tencent, the world’s largest revenue-generating video game company and operator of the popular WeChat-alt app, is now China’s most valuable listed company with a market value of $ 775.9 billion.

Prosus priced its Tencent stake at 595 Hong Kong dollars per share. Shares, equivalent to $ 76.43, said a person familiar with the matter Thursday morning in Hong Kong. That was the peak of a previous range and represented a 5.5% discount on Tencent’s closing price on Wednesday. Even before the offering was launched, investors had lined up to buy about three-quarters of the shares, said people familiar with the matter.

Prosus said Tencent understands and supports its intention. A spokesman for Tencent declined to comment further.

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