Meituan shares skid on report Tencent to sell most or all of its holdings
Dow Jones2022-08-16
MW Meituan shares skid on report Tencent to sell most or all of its holdings
Shares of Hong Kong-listed food delivery service Meituan fell as much as 10% after Reuters reported that shareholder Tencent Holdings was planning to sell all or a bulk of its $24 billion stake. The report, citing four unnamed sources, said Tencent was selling to placate domestic regulators. China has been tightening regulation on the company's technology sector in response to concerns over antitrust and privacy. Tencent shares slipped 1%.
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Tencent plans to divest $24 billion Meituan stake -sources. China's Tencent Holdings plans to sell all or a bulk of its $24 billion stake in food delivery firm Meituan to placate domestic regulators and monetise an eight-year-old investment, four sources with knowledge of the matter said.Tencent, which owns 17% of Meituan, has been engaging with financial advisers in recent months to work out how to execute a potentially large sale of its Meituan stake, said three of the sources.Technology giant Tencent, the owner of China's No. 1 messaging app WeChat, first invested in Meituan's rival Dianping in 2014, which then merged with Meituan a year later to form the current company.Based on Meituan's market capitalisation as of Monday, Tencent's 17% stake is worth $24.3 billion.
