Tencent Holdings Ltd. sold $14.7 billion worth of stock to its biggest shareholder in the world’s second-biggest block trade on record, Bloomberg reported.

  • Prosus priced the 2% stake in Tencent at HK$595 per share, representing a 5.5% discount to the Chinese giant’s last close of HK$629.50.
  • The selldown is the second-biggest block trade on record, following the US Treasury Department’s $20.7 billion sale of American International Group Inc. shares in 2012.
  • Prosus will remain the biggest shareholder of Tencent post transaction, with a stake under 29%. It was marketing 191.89 million Tencent shares at HK$575 to HK$595 apiece.
  • Analysts say the sale could provide a good opportunity to buy Tencent for long-term investors as being able to price at the high end reflects market confidence.
  • The deal will more than quadruple Prosus’s cash reserves from $4.6 billion as of end-September, amid a boom in e-commerce driven by the COVID-19 pandemic.
  • Prosus shares were down 4.6% at the close Wednesday in Amsterdam, while Tencent fell as much as 2.5% in early trading before paring losses to trade 1.3% lower as of 10:20 a.m. in Hong Kong.