Tencent Downplays Offloading Meituan: It Doesn't Mean Strategic Partnership Abandoned

The offloading 90% of stakes it held in Meituan confirms Tencent is stepping up an exit from its vast internet portfolio, following the similar move it made to JD.

BEIJING, November 16  (TMTPOST)— Chinese tech behemoth Tencent played down its move to offload most of its stakes in Meituan, China’s largest food delivery service provider.

Source: Visual China

“Our overall investment strategy is very clear and it doesn’t mean to abandon those strategic partners, (to distribute more shares) is a response to institution investors’ concern,” Tencent management explained to analyst in an earnings call on Wednesday. “In addition, we have RMB15 billion of free cash flow each year, which is very sufficient and enough for our inputs in infrastructure and new products.”

Tencent’s decision on portfolio is made based on three factors—financial strength, industry postioning and the investment return, the chief strategy officer James Mitchell noted at the call. “We’ve already had very good return on investment, namely the internal return rate (IRR) was around 30%, and if you look at the financials, it's profitable,” Mitchell said. The executive added that Meituan is not as profitable as JD.com in terms of distribution for it is also investing in community group purchase and other new services for expansion, which is a target market in the long run.

Earlier Wednesday, Tencent announced it will distribute nearly 958 million Meituan Class B ordinary shares the company directly held to eligible shareholders, as a special interim dividend based on "one Meituan Class B ordinary share for every 10 shares of Tencent". Based on Meituan's closing price of HK$162.3 ($20.74) per share on Tuesday, the total market value of Tencent's Meituan shares to be distributed is nearly HK$155.4 billion ($20.3 billion).

The announcement suggests Tencent decided to almost liquidate Meituan since dividend payment involves approximate 90.9% of shares the WeChat owner held. Tencent will hold less than 100 million shares, less than 2% stakes in Meituan when the dividend paid, thus no longer to be its largest shareholder.

The move confirms Tencent is stepping up an exit from its vast internet portfolio, following the similar action it made to JD. Last December, Tencent unveiled a plan to distribute 457.3 million JD’s Class A shares worth of HK$127.69 billion ($16.37 billion) and bring down its stakes in JD from 17% to 2.3%. In  early January, It disclosed to start divesting an aggregate of 14,492,751 Class A shares of Sea Limited, cutting equity interests in the most valuable listed company in Southeast Asia from 21.3% to 18.7%. Reports in August said Tencent was weighing to divest all or much of its stakes in Meituan, citing the government’s intention to curb the internet giants’ power.

转载请注明出处、作者和本文链接
声明:文章内容仅供参考、交流、学习、不构成投资建议。
想和千万钛媒体用户分享你的新奇观点和发现,点击这里投稿 。创业或融资寻求报道,点击这里

敬原创,有钛度,得赞赏

赞赏支持
发表评论
0 / 300

根据《网络安全法》实名制要求,请绑定手机号后发表评论

登录后输入评论内容

快报

更多

2024-02-24 23:04

东帝汶将于2月26日加入世贸组织

2024-02-24 22:46

世乒赛六连冠,国乒女队战胜日本队夺得釜山世乒赛女团冠军

2024-02-24 22:37

巴菲特:现在的市场比我年轻时更像赌场

2024-02-24 22:37

上海航交所:本周沿海散货综合运价指数小幅波动,需求增量有限

2024-02-24 22:36

最高法:要深化国家层面知识产权案件上诉审理机制改革

2024-02-24 22:14

巴菲特:能改变伯克希尔命运的公司屈指可数

2024-02-24 22:08

建设银行发放首笔“数易贷”数据资产质押贷款

2024-02-24 22:07

比亚迪匈牙利首批乘用车正式交付

2024-02-24 21:36

巴菲特希望无限期保持对日本五家商社的投资

2024-02-24 21:35

巴菲特:格雷格·阿贝尔明日担任伯克希尔哈撒韦公司CEO

2024-02-24 21:29

截至2023年末,伯克希尔哈撒韦持有的固定收益证券投资公允价值达237.58亿美元

2024-02-24 21:04

伯克希尔哈撒韦2023年Q4净利润375.74亿美元,上年同期盈利180.80亿美元

2024-02-24 20:54

合肥肥东地震最新研判:近几日发生4级以上地震可能性不大

2024-02-24 20:39

寒潮致宁波山区电线覆冰,3100户用户停电

2024-02-24 20:35

境外机构连续五个月增持人民币债券

2024-02-24 20:29

哪吒汽车CEO回应年终奖推迟发放:与员工业绩有关,正在最终审核

2024-02-24 20:17

2月24日新闻联播速览19条

2024-02-24 19:52

两部门持续调度雨雪冰冻灾害防范应对工作

2024-02-24 19:49

合杭高铁、沪蓉高铁沿线部分车站有震感,铁路部门启动应急预案

2024-02-24 19:49

足协纪委书记:全体足球从业者要吸取教训,坚决防范打击假赌黑

13
5

扫描下载App