Tencent Slips After Prosus Reveals Plan To Cut 2% Stake By Investing.com

© Reuters.

By Dhirendra Tripathi

Investing.com – Shares of Tencent Holdings (OTC:) slumped in Wednesday’s premarket following a disclosure by Prosus (OTC:) that it will cut its stake in the Chinese tech giant to 28.9% from 30.9%.

Based on Tencent’s closing price on Wednesday, the share sale would have been worth $15.53 billion but given the near 9% fall today, the eventual proceeds could clearly be less. 

The Dutch conglomerate, a subsidiary of South Africa’s Naspers, said it intends to sell up to 191.9 million shares in Tencent to global institutional investors. Naspers was one of the earliest investors in Tencent.  

“The proceeds of the sale will increase our financial flexibility, enabling us to invest in the significant growth potential we see across the group, as well as in our own stock,” CEO Bob van Dijk said in a statement.

Prosus said it was committed to not reducing its stake further for three years.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button