The deal is the biggest block exchange ever, according to data provider Refinitiv. Bulk transactions are usually arranged directly between large institutional investors rather than on public exchanges.
Tencent stock fell 1.5% in Hong Kong on Thursday after the news broke. He won about 80% since Prosus was listed on the Amsterdam Stock Exchange in 2019.
Once the transaction is completed, Prosus will remain Tencent’s largest shareholder, with 28.9%. But it will lose its controlling shareholder status, which under Hong Kong listing rules is granted to investors with at least 30% of the voting rights.
“Prosus intends to use the proceeds of the sale to increase its financial flexibility in order to invest in growth, as well as for general corporate purposes,” Prosus said in a statement.
He also promised not to sell Tencent shares for at least the next three years.
“The focus is now on growing the business and improving financial flexibility and giving us the opportunity to expand into multiple capital allocation opportunities,” said Basil Sgourdos, CFO and Director Naspers executive, during a call for results in November.