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.
The planned sale comes against the backdrop of a sweeping regulatory crackdown in China since late 2020 on technology heavyweights that took aim at their empire building via stake acquisitions and domestic concentration of market power. Tencent has been reducing holdings partly to appease the Chinese regulators and partly to book hefty profits on those bets, said three of the sources. The value of its shareholdings in listed companies excluding its subsidiaries dropped to just $89 billion as of end-March from $201 billion in the same period last year, according to its quarterly reports.
Shares of Hong Kong-listed Meituan fell more than 10% following the Reuters report while Tencent dropped more than 2% in Tuesday afternoon trade.All the sources declined to be named due to confidentiality constraints.
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Source: staronline - 🏆 4. / 75 Read more »