Tech investment firm Prosus says it earned about $14.6 billion from its sale of a 2% stake in Chinese video game and social media giant Tencent in one of the world’s largest stock-trading deals.
In a filing with the Hong Kong Stock Exchange, Tencent said Prosus had sold 191.89 million shares at 595 HK dollars, reducing its stake to 28.9%, that price was 5.5% lower than Tencent’s closing price on Wednesday of HK$629, noting that its stock, which is up 10% this year, is down 2.5% on Thursday.
The stake that Prosus now owns was purchased by Naspers in 2001, and after Prosus sold part of its stake, it pledged not to reduce its remaining stake it owned over the next three years, as it is its largest deal in stock trading since 2018, when Naspers sold a 2% stake in the same Chinese group for $9.8 billion, and Prosus CEO Bob Van Dijk justified that his company is targeting several potential acquisitions that will be beneficial to its business.
Prosus owns stakes in several areas, including online food delivery platforms, digital payment companies, and even globally ranked markets, and from 6 months until September 30th. The company reported a 29% increase in core revenue to $2.2 billion, as revenue from its stake in Tencent offset losses from other investments.
The deal almost completely bridged the gap between the value of Prosus, which has a market capitalization of approximately 153 billion euros, and the value of Tencent’s remaining stake of approximately 186 billion euros, with Citigroup, Morgan Stanley and Goldman Sachs the co-coordinators globally for the sale.