AMSTERDAM: Dutch-based know-how funding firm Prosus NV is to sell a 2% stake in software program group Tencent, worth about $15 billion at present costs, in what may doubtlessly be the most important block commerce on document.
Prosus, majority owned by Naspers of South Africa, stated on Wednesday the sale to institutional buyers would decrease its stake in Tencent to 28.9% from 30.9%.
The transfer highlights the scale of Prosus’s Tencent stake, which the Dutch firm stated it had dedicated not to scale back additional in the subsequent three years.
“The proceeds of the sale will improve our monetary flexibility, enabling us to make investments in the numerous development potential we see throughout the group, in addition to in our personal inventory,” CEO Bob van Dijk said in a statement.
Prosus shares fell 4% to 94.52 euros ($112.37) shortly after the news.
The company said it had informed Tencent of its intention before Wednesday’s announcement. It expects to complete bookbuilding for the deal before Asian markets reopen on Thursday. The sale looks set to be the largest block trade on record, based on Refinitiv data.
Based on an offer document, Prosus is selling Tencent shares at HK$575.00-595.00, a 5.5-8.7% discount to its closing price of HK$629.50 ($80.87), and implying proceeds of $14.2-14.7 billion at current exchange rates.
In addition to its Tencent stake, Prosus owns or invests in online food delivery platforms, classified marketplaces and digital payments businesses.
For the half-year ended September 30, Prosus reported a 29% increase in core earnings to $2.2 billion, as proceeds from Tencent offset losses at its other online businesses.
“We count on the information to seen cautiously till there’s extra readability on how the funds shall be redeployed,” stated analysts from Renaissance Capital in a observe.
The analysts stated they didn’t count on the sale would lead to any quick time period discount in the hole between Prosus’s personal market worth of 160 billion euros and the market worth of its stake in Tencent, worth 200 billion euros as of Wednesday.
Citigroup, Goldman Sachs and Morgan Stanley are joint international coordinators of the stake sale.
The largest earlier block commerce on document was additionally a sale of 2% of Tencent shares, then held by Naspers, for $9.8 billion in 2018, Refinitiv knowledge confirmed.
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