Tencent's shares fell 3.8% today, mainly due to market rumors that prosus, the major shareholder, will sell a large amount of shares. Now rumors have confirmed that they will sell 192 million Tencent shares.
Based on Tencent's current share price of HK $629.5, the stock is worth HK $120.8 billion, about 101.5 billion yuan.
Prosus announced its intention to sell up to 191890000 Tencent shares, equivalent to 2% of Tencent's issued share capital, through its subsidiary MIH TC holdings,The shareholding will be reduced from about 30.9% to 28.9%.
Tencent also issued a response, saying that Tencent had been informed of prosus's idea, understood and supported it.
Prosus promised not to sell any Tencent shares for at least the next three years, consistent with its long-standing belief in Tencent's business potential.
Prosus is the largest shareholder of Tencent. Its parent company is naspers company of South Africa. In 2001, it invested $32 million in Tencent through its subsidiary MIH, which once occupied 46.5% of Tencent's shares. When Tencent went public in 2004, the investment was worth more than $130 billion, up more than 4000 times.
Since then, prosus has reduced Tencent's shares for many times. The last reduction was in 2018, and the shares were reduced from 34% to 31%. Now, just after the commitment period, prosus has reduced its shares to about 29%. This time, prosus has promised not to reduce its shares for three years.