Chinese tech giant Tencent is looking to divest its stake in delivery firm Meituan in a move to appease Chinese regulators amid the crackdown on tech giants in the country, Reuters reported, citing sources. The tech conglomerate owns a 17% stake in Meituan.
Tencent is hoping to make a healthy profit from the stake sale, which is worth US$22 billion as per to Meituan’s market value at the end of Tuesday’s trading.
Tencent is aiming to begin the selling process within a year, depending on market conditions, with the sale likely to be done via a block trade in the public market. This type of sale typically concludes within two days.
Tencent was among the companies which issued with antitrust fines in June. Tencent also posted its slowest quarterly revenue growth since 2004 in May due to the regulatory crackdown. The company has already offloaded its stake in Sea Group and JD.com.
See also: Tencent’s gameplay in a sea of troubles
Editing by Samreen Ahmad and Arpit Nayak
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