TL;DRTencent is selling about 273 million Kuaishou shares (a 7.5% stake) in a block trade worth up to $1.55-1.6bn, cutting its holding to roughly 9.37% from 15.68%. The selldown lands just after Tencent helped fund Kuaishou’s Kling AI spinoff, reading as a rotation from mature short video into generative AI.
Tencent is seeking up to $1.6bn by selling down its stake in short-video platform Kuaishou, Bloomberg reports. A term sheet seen by Reuters puts the block trade at up to $1.55bn.
The deal covers about 273 million shares, a 7.5% stake, offered at HK$43.15 to HK$44.53 each. That represents a discount of 3.2% to 6.2% to Monday’s close in Hong Kong.
The sale cuts Tencent’s holding in its long-time ally from 15.68% to about 9.37%, and Kuaishou confirmed the off-market disposal in an exchange filing. Kuaishou has meanwhile pressed ahead with its own share buybacks.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!Tencent has form here, having trimmed or distributed stakes in JD.com and Meituan in recent years when it judged the holdings mature. It remains one of the most consequential balance sheets in Chinese tech.
