Prosus to promote 2% stake in Tencent price $15 billion

AMSTERDAM: Dutch-based know-how funding firm Prosus NV is to promote a 2% stake in software program group Tencent, price about $15 billion at present costs, in what might probably be the largest block commerce on document.
Prosus, majority owned by Naspers of South Africa, mentioned on Wednesday the sale to institutional traders would decrease its stake in Tencent to 28.9% from 30.9%.
The transfer highlights the scale of Prosus’s Tencent stake, which the Dutch firm mentioned it had dedicated to not scale back additional within the subsequent three years.
“The proceeds of the sale will enhance our monetary flexibility, enabling us to put money into the numerous progress potential we see throughout the group, in addition to in our personal inventory,” CEO Bob van Dijk mentioned in an announcement.
Prosus shares fell 4% to 94.52 euros ($112.37) shortly after the information.
The corporate mentioned it had knowledgeable Tencent of its intention earlier than Wednesday’s announcement. It expects to finish bookbuilding for the deal earlier than Asian markets reopen on Thursday. The sale seems to be set to be the most important block commerce on document, primarily based on Refinitiv information.
Based mostly on a suggestion doc, Prosus is promoting Tencent shares at HK$575.00-595.00, a 5.5-8.7% low cost to its closing value of HK$629.50 ($80.87), and implying proceeds of $14.2-14.7 billion at present alternate charges.
Along with its Tencent stake, Prosus owns or invests in on-line meals supply platforms, labeled marketplaces and digital funds companies.
For the half-year ended September 30, Prosus reported a 29% enhance in core earnings to $2.2 billion, as proceeds from Tencent offset losses at its different on-line companies.
“We anticipate the information to considered cautiously till there may be extra readability on how the funds can be redeployed,” mentioned analysts from Renaissance Capital in a observe.
The analysts mentioned they didn’t anticipate the sale would result in any quick time period discount within the hole between Prosus’s personal market worth of 160 billion euros and the market worth of its stake in Tencent, price 200 billion euros as of Wednesday.
Citigroup, Goldman Sachs and Morgan Stanley are joint world coordinators of the stake sale.
The most important earlier block commerce on document was additionally a sale of two% of Tencent shares, then held by Naspers, for $9.Eight billion in 2018, Refinitiv information confirmed.

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