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Tencent Shares Fall After Naspers Announces Stake Sale

Shares of Tencent Holdings, China’s gaming giant, fell as much as 2.5% to HK$374.60 in the afternoon on Monday, after Prosus and Naspers said they would gradually sell shares in the firm


Shares of Tencent Holdings fell as much as 2.5% on Monday, after Prosus and Naspers said they would gradually sell shares in the firm.
Shares in China's most valuable company fell again on Monday after key shareholders said they would sell down their stakes. Photo: Reuters.

 

Shares of Tencent Holdings, China’s internet gaming and social media giant, fell as much as 2.5% to HK$374.60 in the early afternoon on Monday, after Prosus NV and Naspers said they would gradually sell shares in the firm.

Tencent stock surged as much as 4.2% in morning trade to HK$400.20, its highest since June 9, before sliding in the afternoon. The stock last traded down 1.7% about 30 minutes before the close of trading, when it was one of the biggest percentage decliners in the Hang Seng Tech Index.

The Hang Seng Tech Index rose 2.1% and the benchmark Hang Seng Index surged 2.3%.

Dutch technology investment company Prosus and its controlling shareholder Naspers of South Africa said on Monday they intend to sell down their enormous stake in Tencent to fund a share purchase programme.

Naspers, which holds a 28.78% stake in Tencent through Amsterdam-listed subsidiary Prosus, posted a 16% drop in full-year profit as it reinvested its earnings into other businesses and as the contribution from its shareholding in Tencent dropped after a stake sale last year.

 

• Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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