Beijing (PingWest)—Prosus, the biggest shareholder of Tencent, said on Wednesday that it plans to sell a 2% stake in the Chinese social media giant.
The company said in a statement that the company will sell up to 118.9 million Tencent shares to global investors through its subsidiary MIH TC Holdings, reducing its stake to 28.9%.
The value of this transaction will reach $15.5 billion based on Tencent's last closing price.
Proceeds from the sale will be used to increase Prosus’ financial flexibility to invest in growth, and for general corporate purposes.
Prosus said Tencent understands and supports its intention. The company has committed not to sell any further Tencent shares for at least the next three years, "in line with its long-term belief in the potential of the business".
Hong Kong-listed Tencent, the world’s largest videogame company by revenue, is now China’s most valuable publicly listed company with a market capitalization equivalent to $775.9 billion.
In 2001, Prosus parent Naspers, Africa’s largest listed company, paid $34 million for a one-third stake in Tencent before it went public.