By Yantoultra Ngui and Rajasik Mukherjee
SINGAPORE, July 6 (Reuters) – Tencent Mobility, a unit of Tencent Holdings, has raised about $1.5 billion by selling shares in Chinese short-video company Kuaishou Technology, according to a final term sheet seen by Reuters early on Tuesday.
Here are more details from the final term sheet:
• The Tencent unit sold 272.9 million Kuaishou Class B shares at HK$43.25 each, valuing the sale at about $1.505 billion.
• The final offer price represents a discount of about 6% to Kuaishou’s last close of HK$46.00 on Monday.
• The sale is fully secondary, meaning Kuaishou will not receive any money from the deal. Tencent Mobility will receive the proceeds.
• Kuaishou Technology said in an exchange filing later in the day that Tencent had disposed of an aggregate 272.9 million shares of Kuaishou through an off-market block trade.
• Following the disposal, Tencent’s stake in Kuaishou will decrease to about 9.37% from 15.68%, and the former will cease to be a substantial shareholder of Kuaishou.
• Kuaishou also said it had repurchased 174.84 million Class B shares worth HK$8.35 billion ($1.06 billion) under its HK$16 billion share repurchase programme.
• The shares are expected to trade on Tuesday and settle on Thursday.
• The seller’s residual stake will be subject to a 90-day lock-up.
• Kuaishou runs one of China’s major short-video and livestreaming platforms, according to its website.
• Tencent did not immediately respond to Reuters requests for comment sent outside regular business hours.
($1 = 7.8424 Hong Kong dollars)
(Reporting by Yantoultra Ngui and Rajasik Mukherjee; Editing by Anil D’Silva and Matthew Lewis)
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