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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