Chinese conglomerate Tencent Holdings is looking to sell most of its $24bn stake in food delivery giant Meituan to alleviate the regulator’s concern, Reuters reported. The company has a 17% stake in Meituan, which it invested in eight years ago. The tech major plans to offload its stake this year if market conditions are favorable, through a block deal. After a regulatory crackdown in China that began last year, Tencent started to reduce its portfolio holdings, and as of March 2022, the value of its stake in listed companies fell to $89bn from $201bn in a year. In December last year, Tencent divested its stakes in JD.com worth $16.4bn and Sea Ltd for $3bn in January 2022.
Tencent’s 3.43% 2023 traded lower 0.04 points to 99.87 to yield 3.50%.
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