Xavier Kong · · 1 min readTencent’s Sea withdrawal continues with board rep’s exit
Tencent COO Mark Ren has left Sea Group’s board of directors, with the resignation effective starting September 5 this year.
Photo credit: Tencent
The Chinese tech giant granted an irrevocable proxy to Sea’s board of directors for votes on shareholder matters.
This, when viewed with Tencent’s moves to divest over US$3 billion worth of its stock in Sea earlier this year, looks to be the tech giant’s next step in relinquishing its control over Sea.
The divestment brought Tencent’s stake in the Southeast Asian company down to 18.7%, which also pushed its voting rights below 10%.
There are also investor concerns that Tencent will make further divestitures following a report that the tech giant intends to unload up to US$14.5 billion from its portfolio. While Tencent has denied this, concerns remain that any such move by Tencent or Sea could lead to unwanted pressure on the tech stock market.
Sea posted a net loss of US$569.8 million in its recent Q2 results, with expenses climbing 52.3% year on year. Tencent’s Q2 results suffered as well due to the continued impact of Beijing’s regulatory crackdown on its gaming business.
See also: Was Sea’s 22% stock plunge after Q2 results an overreaction?
Editing by Miguel Cordon and Jaclyn Tiu
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