Shares of Tencent fell on Wednesday after Prosus, the largest shareholder in the Chinese internet giant, said it planned another significant reduction in its stake in the company.
Shares in Tencent Holdings Ltd. , 0700.HK , fell on Wednesday after the Chinese internet giant’s largest shareholder said it planned to reduce its stake in the company by another significant amount.
Prosus, which is majority-owned by South Africa’s Naspers, said a day earlier it intends to start selling more Tencent shares this week to fund a share buyback program that began last year. The additional stake that Prosus set aside for sale was worth about $4.6 billion as of Tuesday’s close.
Shares of Tencent fell 5.2 percent, taking the company’s market value to about $435 billion. The Wall Street Journal previously reported that Tencent has also been buying back shares to help ease pressure on the share price. Tencent’s Hong Kong-listed shares have risen 13 percent this year.
In 2001, before Tencent went public, Naspers bought a third of the Chinese company for $34 million. Prosus was formed in 2019 to hold Naspers’ international assets.
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Shares in Tencent Holdings Ltd. , 0700.HK , fell on Wednesday after the Chinese internet giant’s largest shareholder said it planned to reduce its stake in the company by another significant amount.
Prosus, which is majority-owned by South Africa’s Naspers, said a day earlier it intends to start selling more Tencent shares this week to fund a share buyback program that began last year. The additional stake that Prosus set aside for sale was worth about $4.6 billion as of Tuesday’s close.
Shares of Tencent fell 5.2 percent, taking the company’s market value to about $435 billion. The Wall Street Journal previously reported that Tencent has also been buying back shares to help ease pressure on the share price. Tencent’s Hong Kong-listed shares have risen 13 percent this year.
In 2001, before Tencent went public, Naspers bought a third of the Chinese company for $34 million. Prosus was formed in 2019 to hold Naspers’ international assets.