Business Maverick

Business Maverick

Prosus’s Stake in Tencent Falls Below 26% as Selloff Continues

Prosus’s Stake in Tencent Falls Below 26% as Selloff Continues
Bob Van Dijk, chief executive officer of Naspers Ltd., stands for photographers ahead of the trading debut of the new Prosus NV unit of Naspers Ltd., outside the Amsterdam Stock Exchange, operated by Euronext NV, in Amsterdam, Netherlands, on Wednesday, Sept. 11, 2019. Naspers will retain 73% of the new company, which will house everything from a 31% stake in Chinese online giant Tencent to food delivery and advertising firms from the U.S. to India and Brazil. Photographer: Jasper Juinen/Bloomberg via Getty Images

Prosus NV continued its selloff of Tencent Holdings Ltd., bringing its stake in the Chinese internet giant to under 26%. 

The Amsterdam-listed tech investor sold 789,600 ordinary shares of Tencent on Tuesday, lowering its holding to 25.99%, it said in a regulatory filing. Prosus bought its own shares worth €185 million ($203 million) between April 17 and April 21 as part of a repurchase programme, according to the statement.Prosus, an early investor in Tencent through its Cape Town-based parent Naspers Ltd., first started its campaign to reduce its holdings in mid-2022 as a way to fund the buyback. The selloff is an open-ended process and Chief Executive Officer Bob van Dijk has said that trades are being executed in small chunks of between 3% to 5% of daily volumes.

Prosus deposited an additional 96 million Tencent shares, or about 1% of the company, in Hong Kong’s clearing and settlement system this month, typically a precursor to offload stock. The Dutch firm has a regulatory requirement to disclose its interest in the Chinese company every time it decreases by a full percentage point.

Prosus has cut its stake in Tencent from 29% in June 2022 in a move that could help it to bridge the gap between its market value and the value of the assets it holds.

Prosus shares were down 1.1% in Amsterdam while parent Naspers declined 0.3% Tuesday in Johannesburg. BM/DM


Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

MavericKids vol 3

How can a child learn to read if they don't have a book?

81% of South African children aged 10 can't read for meaning. You can help by pre-ordering a copy of MavericKids.

For every copy sold we will donate a copy to Gift of The Givers for children in need of reading support.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options