Update 10:55am : Adds another China publication denying the story.
- Tencent ( OTCPK:TCEHY ) is said to plan to sell all or most of its 17% stake in Chinese food delivery company Meituan ( OTCPK:MPNGF ) as it tries to appease Chinese regulators. Meituan dropped 7%.
- Tencent has hired financial advisers in recent months to look at ways to sell the 17% stake in Meituan ( OTCPK:MPNGF ) that's valued at about $24 billion, according to a Reuters report. Tencent ( OTCPK:TCEHY ) wants to kick off the sale this year if conditions are favorable.
- Tencent doesn't plan to sell its stake in Meituan, 36Kr reported today, citing a source close to the Chinese tech giant, according to a tweet from Yicai Global.
- The move to potentially sell its stake in Meituan ( OTCPK:MPNGF ) come as Tencent has also been selling down stakes in other companies including JD.com ( JD ) and SEA Ltd. ( SE ). Sea slumped 11% i n trading on Tuesday, while JD fell almost 1%.
- Meituan ( OTCPK:MPNGF ) has been a target for Chinese regulators and the food delivery company was fined $533M for allegedl y violating anti-monopoly laws in October.
- Other Chinese names where Tencent ( OTCPK:TCEHY ) owns a stake also appeared to fall in sympathy on the Reuters news. Bilibili ( BILI ) ADRs dropped 2.5% in premarket trading and Pinduoduo ( PDD ) slipped 1.8%.
For further details see:
Tencent said to plan to sell majority of its $24 billion stake in Meituan (update)