Naspers to Reduce its stake in Tencent

Updated on 22 March 2018

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Media company Naspers said on Thursday it intends to sell up to 190 million Tencent Holdings shares, equal to two percent of Tencent’s total issued share capital and reducing its stake from 33.2 percent to 31.2 percent.

“The funds will be used to reinforce Naspers’ balance sheet and will be invested over time to accelerate the growth of our classifieds, online food delivery and fintech businesses globally and to pursue other exciting growth opportunities when they arise,” it said.

“Naspers will not sell further Tencent shares for at least the next three years, in line with its long-term belief in Tencent’s business,” it added, calling the Chinese firm “one of the very best growth enterprises in any industry in the world, managed by an exceptionally able team”.

It said the Tencent shares would be offered to institutional investors globally, subject to customary selling restrictions. Bank of America Merrill Lynch, Citigroup and Morgan Stanley have been appointed joint global-coordinators and joint book-runners to manage the transaction.

“Shareholders of Naspers are advised that the transaction, if successfully implemented, is likely to constitute a category 2 transaction in terms of the listing R/rquirements of the JSE and may have a material effect on the price of Naspers’ securities,” Naspers said, advising shareholders to exercise caution.

Naspers was down nearly five percent on the JSE on Thursday. (via African News Agency)

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