Tencent Holdings has raised $3 billion by selling 14.5 million shares at $208 each in Sea. Tencent said it had entered into a deal to reduce its stake in the Singapore-based gaming and e-commerce group to 18.7% from 21.3%. The company plans to retain the substantial majority of its stake in Sea for the long term.
The sale comes after Tencent said last month it would divest $16.4 billion of its stake in JD.com (9618.HK), weakening its ties to China's second-biggest e-commerce firm, amid pressure from Beijing's broad regulatory crackdown on technology firms.
Sea said Tencent and its affiliates had given an irrevocable notice to convert all their Class B ordinary shares. Upon conversion, all outstanding class B shares of Sea will be beneficially owned by Forrest Li, the founder, chairman and CEO of Sea, Southeast Asia's most valued company, which has a market capitalization of $110 billion.
Guotai Junan International analyst Vincent Liu said he did not see Tencent's move to trim its Sea stake as surprising, given its recent JD.com divestment. Tencent owns a huge, diversified investment portfolio so buying or selling shares in its investors could be considered a "regular action", he said.
Sea's shares have shed 47% from a record high of $372 struck in October but have still risen five-fold in the past three years.
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