Prosus, the subsidiary of the South African Internet and media giant Naspers, has announced its intention to sell 2% of the shares it holds in Tencent, the Chinese holding company specializing in video games and the Internet.
The transaction, which involves 191.8 million shares, will be executed through MIH TC Holdings Limited, a subsidiary of the company listed on the Dutch market.
Read also:Sparkle Business Launches Mobile App to Support SMEs in Nigeria
Prosus will reduce its stake from 30.9% to 28.9%, but will remain the largest shareholder in the group based in Shenzhen, China.
“Prosus intends to use the proceeds of the sale to increase its financial flexibility in order to invest in its growth, as well as for general corporate purposes,” the group said in a note to investors. present in a multitude of companies, particularly in India, Brazil and Russia.
Read also: Rwandan Electric Mobility Startup Ampersand Raises $3.5m
Prosus, beaten in July 2020 by the Norwegian Adevinta who bought the e-Bay classifieds business, could be interested in new opportunities, especially in the e-commerce sector which has been very successful since the advent of covid-19. The Amsterdam Stock Exchange-listed company said it will not make any further sales of Tencent shares for the next three years.
Recall that Naspers’ investment in Tencent in 2001 only cost him about $ 32 million. Tencent recently announced quarterly profit up 175% at the end of December 2020.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
Prosus sell Tencent Prosus sell Tencent