© Reuters. File photo: File photo: Tencent’s logo appears in its booth at the 2020 China International Trade in Services (CIFTIS) exhibition in Beijing
Written by Toby Sterling and Scott Murdoch
AMSTERDAM (Reuters) – Amsterdam-based tech investor Brosus (OTC 🙂 NV said it made $ 14.6 billion selling a 2% stake in Tencent Holdings (OTC 🙂 Ltd, the Chinese gaming and social media giant, in One of the biggest deals ever in the world.
“Our belief in Tencent and its management team is unwavering, but we also need to fund the continued growth in our core business lines and emerging sectors,” Bruceus Chairman Cos Becker said in a statement after the deal closed on Thursday.
In a file on the Hong Kong Stock Exchange, Tencent said Prosus sold 191.89 million shares for 114.1 billion HK dollars, reducing its stake to 28.9%.
This runs at 595 HK dollars ($ 76.44) a share, at the top of the indicative range from 575 HK dollars to 595 HK dollars which was set when Prosus announced its intention to sell the stake in an accelerated bid on Wednesday afternoon.
Price was 5.5% off Tencent’s closing Wednesday at $ 629.50 HK shares Tencent, which has risen 10% so far this year, opened 2.5% down in Hong Kong on Thursday following the news.
Refinitiv data showed that the block trade – a trade of a large number of securities – has been Tencent’s biggest stock since 2018 when Naspers sold 2% of the group for $ 9.8 billion.
Prosus is also investing in online food delivery platforms, classified marketplaces, and digital payment businesses.
For the half year ending September 30, the company reported a 29% increase in base profits to $ 2.2 billion, as proceeds from its Tencent stake offset losses in other online interest.
Citigroup Company (NYSE :), Morgan Stanley (NYSE 🙂 and Goldman Sachs Group Inc (NYSE 🙂 were the Joint Global Coordinators for the sale.
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