Naspers raise R117bn from Tencent share sale


The Hong Kong-listed stock opened 7.8 percent lower at HK$405, its lowest opening price since February 9, before regaining ground to HK$419.6 by noon. Bourse data showed it was the most traded stock on Friday, with turnover of HKUS$126 billion (US$16.05 billion). The sale was priced at HK$405 per share, a discount of 7.8 percent to Tencent┬┤s closing price on Thursday.

Hong Kong - Tencent lost more than $26bn of market capitalisation after Asia's most valuable company warned it will sacrifice short-term margins, spending on content and technology in pursuit of growth.

"Tencent needs to invest in new business".

Lau said the company's Tencent Music business is suitable for its own IPO while Ma said a listing of Tencent shares on a mainland exchange would be considered if policy conditions are viable. Naspers won't sell more shares in the company for at least three years, it said.

The oldest and largest investor of the Chinese tech giant Tencent Ltd. (OTC: TCEHY), Naspers Ltd., is planning to sell more than $10 billion worth of shares of this Chinese tech giant, Wall Street Journal reported. "There could be some concern in terms of what Naspers have been investing in outside of Tencent that are mostly smaller assets".

CICC analyst Natalie Wu called the development "a good opportunity to buy into dips given Tencent's solid fundamentals".

Naspers, which still has a major stake in Shenzhen-based Tencent, is cashing in a sliver of one of the greatest venture-capital investments ever.

Founded in 1915, Naspers has transformed itself from an apartheid-era newspaper publisher into a US$127 billion multinational with private equity-style investments in e-commerce platforms.

The sale allows Naspers "to raise a sizeable amount in a short period of time that provides us with ample capacity to fund our ambition in the next three years", said the company's chief financial officer Basil Sgourdos, during a phone interview in Hong Kong.