Prosus sold 371k Tencent shares, bringing ownership to 22.996%

Prosus sold 371k Tencent shares, bringing ownership to 22.996%

Prosus, a global investment company, has sold 371,000 Tencent shares, reducing its ownership in the Chinese tech giant to 22.996% as of July 2, 2025. This move comes amidst Tencent's ongoing share buyback program, which has seen the company repurchase over HK$222 billion in shares over the past three years [2].

The sale of Tencent shares by Prosus aligns with the company's strategy to optimize its portfolio and potentially unlock shareholder value. Tencent's share buybacks have been a strategic move to address perceived undervaluation and bolster shareholder confidence amid regulatory challenges and shifting market sentiment [2]. The buyback program, which includes a HK$80 billion annual target, has seen significant activity in 2025, with HK$17 billion spent by May and further purchases planned for June [2].

Prosus's decision to reduce its stake in Tencent may reflect a strategic reassessment of the company's portfolio in light of its recent capital allocation activities. However, the sale also underscores the ongoing market dynamics and the potential for shifts in shareholder value. Prosus's move is part of a broader trend of institutional investors adjusting their holdings to align with evolving market conditions and strategic objectives.

As of July 2, 2025, Prosus's stake in Tencent stands at 22.996%, down from its previous level. The exact reasoning behind Prosus's decision to sell its Tencent shares is not explicitly detailed in the provided materials, but it is clear that the company's strategy is influenced by both its own financial goals and broader market conditions.

References:
[1] https://www.quiverquant.com/news/Globavend+Holdings+Limited+Announces+1-for-200+Reverse+Stock+Split+to+Enhance+Share+Structure
[2] https://www.ainvest.com/news/tencent-buybacks-strategic-play-unlock-shareholder-2507/