Prosus grabs $14.7bn for 2% of Tencent in world's largest block deal

Photo: EPA

The Dutch technology company Prosus announced it had agreed terms to sell a package of its shares in Chinese gaming and social media giant Tencent in what proves to be the world’s largest block deal, Reuters reported. The value of the transaction involving a 2% stake is estimated at some 14.7 billion dollars. Tencent, in a Hong Kong Stock Exchange filing, confirmed Prosus sold 191.89 million shares for $14.67 billion, reducing its stake to 28.9%.

Prosus, majority controlled by Naspers, did not respond to a request for comment on the pricing. The block trade - or the usually private, single trade of a large amount of securities - surpassed the previous record set in 2018 when Naspers also sold 2% of Tencent for $9.8 billion, Refinitiv data showed. “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,” Prosus Chief Executive Bob van Dijk said in a statement. Prosus also invests in online food delivery platforms, classified marketplaces and digital payments businesses.

The sale is unlikely to lead to any short-term reduction in the gap between the market value of Prosus at 160 billion euros and that of its Tencent stake at 200 billion euros.

Citigroup Inc, Morgan Stanley and Goldman Sachs Group Inc were joint global coordinators for the sale.

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