Chinese gaming and social media company Tencent Holdings Ltd (OTC:TCEHY) looks to cut its stake in Singapore-based gaming and e-commerce firm Sea Ltd (NYSE:SE), reducing its voting power to under 10%, Reuters reports.
- Tencent sold at a price range of $208.00-$212.00 per share, bringing the total divestment to up to $3.1 billion.
- The price range implies a discount of 5.1%-6.9% to Sea's January 3 closing price of $223.31.
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- Tencent will divest about 14.5 million shares, reducing its stake to 18.7% from 21.3%.
- Tencent looks to retain the substantial majority of its stake in Sea for the long term.
- "The share sale unlocks a portion of the value of Tencent's investment in Sea, which has seen significant growth and expansion in its global business operations. The divestment provides Tencent with resources to fund other investments and social initiatives."
- Price Action: SE shares traded lower by 12.70% at $194.90 in the market session on the last check Tuesday.
