Make Kitco Your Homepage

Prosus to sell 2% Tencent stake worth $15 billion

Kitco News

AMSTERDAM (Reuters) -Dutch-based technology investment company Prosus NV plans to sell a 2% stake in software giant Tencent, worth about $15 billion at current prices, in an accelerated offering to institutional investors.

Prosus, majority owned by Naspers of South Africa, said the sale would lower its stake in Tencent to 28.9% from 30.9%.

The move underlines the size of Prosus's Tencent stake, which it said it had committed not reduce further in the next three years.

"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," CEO Bob van Dijk said in a statement.

Prosus shares fell 4% to 94.52 euros shortly after the news.

The company said it had informed Tencent of its intention before Wednesday's announcement.

In addition to its Tencent stake, Prosus owns or invests in online food delivery platforms, classified marketplaces and digital payments businesses.

Reporting by Toby SterlingEditing by Jason Neely and David Goodman

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.