Prosus continues Tencent selloff


Prosus continued its selloff of Tencent, bringing its stake in the Chinese internet giant to under 26%.

The Amsterdam-listed tech investor sold 789,600 ordinary shares of Tencent on Tuesday, lowering its holding to 25.99%, it said in a regulatory filing.

Prosus bought its own shares worth €185 million ($203 million) between April 17 and April 21 as part of a repurchase program, according to the statement.

Prosus, an early investor in Tencent through its Cape Town-based parent Naspers Ltd., first started its campaign to reduce its holdings in mid-2022 as a way to fund the buyback.

The selloff is an open-ended process and Chief Executive Officer Bob van Dijk has said that trades are being executed in small chunks of between 3% to 5% of daily volumes.

Prosus deposited an additional 96 million Tencent shares, or about 1% of the company, in Hong Kong’s clearing and settlement system this month, typically a precursor to offload stock.

The Dutch firm has a regulatory requirement to disclose its interest in the Chinese company every time it decreases by a full percentage point.

Prosus has cut its stake in Tencent from 29% in June 2022 in a move that could help it to bridge the gap between its market value and the value of the assets it holds.

Prosus shares were down 1.1% in Amsterdam, while parent Naspers declined 0.3% Tuesday in Johannesburg.