Tencent will sell $ 3 billion in shares of Singapore-based gaming company Sea Ltd

Tencent will sell more than $ 3 billion of its shares in Singapore’s gaming and e-commerce group Sea Ltd, less than a month after selling its stake in JD.com, China’s e-commerce.

China’s most valuable technology company said that when the transaction is completed, its share in Sea’s capital will fall from 21.3 percent to 18.7 percent. The shares sold were worth about $ 3.2 billion at the closing price on Tuesday.

The statement said it would retain a “significant majority” of its capital in the Sea “in the long run” and would no longer sell shares for the next six months. No reason was given for the sale, but it was said that the income would “finance other investments and social initiatives”.

The sale comes a month after Tencent said it would distribute $ 16 billion in shares in the Chinese online shopping group JD.com shareholders, reducing its stake from about 17 percent to 2.3 percent.

A person close to Tencent said at the time of JD.com’s move that although regulators had not asked him to sell his $ 259 billion investment, according to Bernstein analysts, the company wanted to show it was not “building an empire”.

The company did not want to be seen as having a huge impact on a huge segment of the economy forever, the person added.

In addition to selling its stake in Sea Ltd, Tencent also said it would convert its Class B shares, which currently have three votes each, into Class A shares at Sea’s general meeting in February. Following the convention, Forrest Lee, Sea’s chief executive, will hold all Class B stocks, and Tencent’s voting power at Sea will fall to less than 10 percent.

Tencent has been a major investor in Chinese technology firms, but has also been a company over the past year quickly expanded its overseas investments.

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.