(July 6): Tencent Holdings Ltd is seeking to raise as much as US$1.55 billion ($2 billion) in a selldown of part of its stake in short-video app operator Kuaishou Technology through a block trade.
The Chinese tech giant is offering about 273 million shares in Kuaishou, or a 7.5% stake, according to terms of the deal seen by Bloomberg News. The shares are being sold at HK$43.15 to HK$44.53 each, representing a 3.2% to 6.2% discount to Kuaishou’s close on Monday.
The selldown comes shortly after Tencent joined a US$2.8 billion financing round for Kuaishou’s Kling AI, the creator of one of China’s most popular generative video services. The app was behind a surge in Kuaishou’s shares last year, although they have since given up many of those gains.
Tencent will face a 90-day lockup on its remaining stake after the block trade. Goldman Sachs Group Inc and Morgan Stanley are arranging the deal.
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