Prosus sells 2 per cent of Tencent stake in world's largest block trade

The block trade beat the previous record set in 2018 when Naspers also sold 2 per cent of Tencent for $9.8bn

Technology investor Prosus has sold 2 per cent of Tencent Holdings for $14.7bn, making it the world's largest block trade on record.

In a Hong Kong Stock Exchange filing, Tencent, said Prosus sold 191.89 million shares for HK$114.1bn ($14.67bn, £10.6bn, €12.3bn), reducing its stake to 28.9 per cent, working out as HK$595 per share.

The price was a 5.5 per cent discount on Tencent’s Wednesday close of $HK629.50. The stock, which is up 10 per cent so far this year, opened 2.5 per cent lower in Hong Kong following the news.

The block trade, or the usually private and single trade of a large amount of securities, beat the previous record set in 2018 when Naspers which has a majority control in Prosus, also sold 2 per cent of Tencent for $9.8 billion, Refinitiv data showed.

“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,” Prosus CEO Bob van Dijk stated.

Prosus which also invests in online food delivery platforms, marketplaces and digital payments businesses, reported a 29 per cent increase in core earnings at $2.2bn for the half-year ended September 30.

Citigroup, Morgan Stanley and Goldman Sachs Group were joint global coordinators for the sale.

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