The deal is the most important block commerce ever, in response to information supplier Refinitiv. Block trades are sometimes organized immediately between massive institutional traders somewhat than on public inventory exchanges.
Tencent’s inventory dropped 1.5% on Thursday in Hong Kong after the information. It has gained about 80% since Prosus was listed on the Amsterdam inventory change in 2019.
After completion of the deal, Prosus will stay Tencent’s single largest shareholder, with 28.9%. But it’s going to lose its controlling shareholder standing, which below Hong Kong itemizing guidelines is granted to traders who maintain at the very least 30% of voting rights.
“Prosus intends to use the proceeds of the sale to increase its financial flexibility to invest in growth, plus for general corporate purposes,” Prosus stated in an announcement.
It additionally promised to not promote any additional Tencent shares for at the very least the following three years.
“The focus now is on growing the business and improving financial flexibility and giving ourselves the room to be able to deploy across multiple capital allocation opportunities,” Basil Sgourdos, monetary director and govt director of Naspers, stated in an earnings name in November.