Tencent will sell its stake in Singaporean gaming and e-commerce group Sea Ltd worth more than US$3 billion, less than a month after it sold its stake in Chinese e-commerce company JD.com.
The technology company with the highest market value in China said that once the transaction is completed, its stake in Sea will fall from 21.3% to 18.7%. Calculated at Tuesday’s closing price, the value of the sold shares was approximately US$3.2 billion.
In a statement, it stated that it will retain its “majority” stake in Sea for the “long term” and will not sell more shares in the next six months. It did not state the reason for the sale, but said the proceeds will “fund other investments and social initiatives.”
The transaction was made after Tencent stated that it would take place in a month Distributed 16 billion U.S. dollars in stocks Reduced Chinese online shopping group Jingdong’s equity from approximately 17% to 2.3%.
A person close to Tencent stated in JD’s move that although regulators did not require it to sell its investments, according to Bernstein analysts, these investments total about $259 billion, but the company is keen to show that it There is no “Empire State Building”.
The person added that the company does not want to “be seen as permanently exerting a huge influence on a large part of the economy”.
In addition to selling its shares in Sea Ltd, Tencent also stated that it will convert each of its three current Class B shares into Class A shares at the Sea Annual General Meeting in February. After the conference, Forrest Li, CEO of Sea, will hold all Class B shares, and Tencent’s voting rights in Sea will drop below 10%.
Tencent has always been a major investor in Chinese technology companies, but in the past year, the company has also Rapidly expand overseas investment.