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Tencent's main shareholder Prosus nets $15 billion from record stock sale

April 8, 2021. Summarized by summa-bot.

Compression ratio: 46.4%. 1 min read.

A worker waters the flowers around an installation reading "Follow Our Party Start Your Business" in front of the Tencent Holdings Ltd. headquarters in Shenzhen, China, on Saturday, March 20, 2021. Asias largest conglomerate was??censured??by Chinas antitrust watchdog on Friday as Beijing expands a crackdown that began with Jack Mas online empire. Photographer: Qilai Shen/Bloomberg via Getty Images

Tencent's biggest shareholder has sold $14.7 billion worth of shares in the Chinese social media and gaming giant, and will use the money to invest in other growth ventures.

Hong Kong (CNN Business)Tencent's biggest shareholder has sold $14. 7 billion worth of shares in the Chinese social media and gaming giant, and will use the money to invest in other growth ventures.

Prosus (PROSY), a spin-off by South African media and internet investment firm Naspers (NAPRF), sold a 2% stake in Tencent (TCEHY) for HK$114. 2 billion ($14. 7 billion), the Chinese tech giant said in a Hong Kong Stock Exchange filing on Thursday.

Tencent, which reported a strong financial year during the pandemic, is by far Nasper's most successful investment.

Tencent's stock dropped 1. 5% on Thursday in Hong Kong after the news.

After completion of the deal, Prosus will remain Tencent's single largest shareholder, with 28. 9%.

Prosus parent Naspers paid $32 million back in 2001 for a 46. 5% stake in Tencent.

"Prosus intends to use the proceeds of the sale to increase its financial flexibility to invest in growth, plus for general corporate purposes," Prosus said in a statement.

Prosus, which mainly invests in consumer internet companies, said last November that its businesses have benefited from growth trends in that space, as the pandemic has accelerated digital transformation.

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