Deployment of reduction? Tencent's major shareholder deposits 96 million shares into the central clearing system
Tencent's major shareholder, the South African media giant Naspers and its subsidiary Prosus, have deposited 96 million Tencent shares into the Central Clearing and Settlement System (CCASS) for gradual reduction and to support their own buyback plans. Since the launch of the buyback plan, Prosus has created significant value for Naspers and itself. Tencent, on the other hand, has spent HKD 49 billion on share repurchases. Starting from May 17th, Tencent has repurchased a total of 16.79 million shares, amounting to a total of HKD 6.4 billion
According to the Zhitong Finance and Economics APP, on May 21st local time, Tencent (00700) major shareholder, the South African media giant Naspers, and its internet investment flagship Prosus updated their buyback plan progress. Prosus deposited 96 million Tencent shares into the Central Clearing and Settlement System (CCASS), equivalent to 1% of Tencent's issued share capital, to gradually reduce its holdings in support of Prosus's own share buyback plan.
It is reported that the last time Prosus deposited shares was on October 19, 2023, with approximately 96 million shares deposited at that time. Goldman Sachs' position increased to 500 million shares or 5.3%. By May 10th this year, Goldman Sachs' position decreased to 380 million shares or 4%, reflecting the reduction in holdings during the period.
Prosus announced that since the launch of its own buyback plan, it has created significant value for Naspers and Prosus shareholders. From the launch of the buyback plan until the end of March 2024, the holding company's discount to net asset value decreased by 21 percentage points, releasing $30 billion in value. Prosus's free float also decreased by 21%, stimulating an 8% improvement in net asset value per share.
It is worth mentioning that on the evening of April 8th, Tencent Holdings released the full version of its 2023 annual report. In terms of shareholding, the financial report shows that at the end of 2023, Tencent's major shareholder Naspers Limited, controlled through Prosus' MIH Internet Holdings B.V., held 2.367 billion Tencent shares, a decrease of 210 million shares compared to the previous year. The shareholding ratio decreased from 26.93% at the end of 2022 to 24.96% at the end of 2023. While the major shareholder reduced its holdings, Tencent repurchased shares. It is reported that Tencent repurchased HKD 49 billion in 2023, exceeding the total repurchase amount of the past decade.
On May 17th, after Tencent released its first-quarter performance, it initiated a buyback starting from May 17th to offset the impact of the South African major shareholder's reduction. As of the 7th day, a cumulative repurchase of 16.79 million shares, totaling HKD 6.4 billion, with a daily average repurchase of HKD 900 million
