Tencent Dismisses Claims of Divestment

HK-Listed technology stock, Tencent has dismissed a report it was considering divestment in companies from Meituan to KE Holdings to bankroll share buybacks and new businesses.

To recap, Tencent is the fourth-largest stock on Hong Kong’s Hang Seng Index, with a staggering 7.6 per cent weighting.

According to the spokesperson, the tech company has no need to raise funds nor a timeline for such divestments.

Last month, James Mitchell, the chief strategy officer of Tencent clarified that there was no intention to sell all or much of its stake in food delivery giant Meituan.

Despite that, the speculation that it would unwind some of its vast portfolios has persisted. Its biggest investments include SGX-listed Sea, Kuaishou Technology, and Bilibili.

The tech giant has disclosed plans to sell shares in investees such as e-commerce giant JD.com and Singapore-based Sea in 2021 as Beijing punishes the country’s tech giants for anti-competitive behavior, including maintaining closed ecosystems that favor certain firms at the expense of others. The trend has weighed on the stocks of companies with Tencent ownership.

“We don’t have any target amounts for divestments. We have always invested with the goal of generating strong returns for our company and shareholders, not according to any arbitrary timeline or target,” a Tencent spokesperson said in a statement.

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