Tencent shares are going to be sold by Naspers Ltd. and Prosus NV.
On Monday, the boards of directors of Prosus N.V. and Naspers Limited, the corporation that owns it, voted to start an ongoing repurchase programme for its common N shares.
Companies will repurchase shares in a fashion that will allow them to sell Tencent Holdings Limited shares in discrete amounts each day.
According to a statement on Prosus’ website, Tencent is in favour of Prosus’ withdrawal. Conducting a repurchasing campaign may increase the group’s per-share exposure to Tencent for Prosus and Naspers.
The boards of Naspers and Prosus believe that it is in the group’s best interests to frequently repurchase individual shares and monetize the group’s holdings in Tencent Holding.
Tencent’s shares will be monetized in a way that the selling of shares would only account for 3% to 5% of the company’s typical daily volume of shares traded on the open market. Its purpose is to guarantee that the Tencent share repurchase programme and sale comply with all relevant legal requirements and regulatory frameworks.
The repurchase programme may enhance the net asset values per share for Prosus and Naspers, according to Bob van Dijk, CEO of Prosus and Naspers. Additionally, this action will guarantee that the value production of Tencent and non-Tencent assets are properly balanced.
More than 28% of the shares of Tencent Holdings Limited, which is worth more than $100 billion, are held by Naspers through its subsidiary Prosus.
In a different announcement, Prosus N.V. confirmed that they had sold the JD. Com shares they had acquired from Tencent. As a special interim dividend in December 2021, Tencent distributed Class A common shares of JD.com. Prosus acquired 131,873,028 JD.com shares via MIH TC Holdings Limited, one of its subsidiaries.
The website of Prosus N.V claims that the shares of JD.com were sold in a systematic manner on the open market.
The corporation raised about $3.67 billion from sales. The money will be kept by the business for “general corporate and liquidity purposes,” according to the plan.
The statement also notes that shares of JD.com have a $3.94 billion market value as of March 31, 2022.
The organisation wants to create bigger and more lucrative enterprises, so it will repurchase shares and sell Tencent stock. The business also wants to keep making important investments while lowering expenses and boosting profitability.
The group’s principal goal is to make the e-commerce portfolio profitable.