Naspers, a broad-based multinational Internet, and media group has been selling out its 2 per cent of the stock worth $10.6 billion in Chinese investment conglomerate Tencent.
This will reduce Naspers’ stake, which was bought in 2001 for $32 million, in the Shenzhen-based firm from 33.2 per cent to 31.2 per cent. Naspers’ all stake is now worth $175 billion.
Naspers in a statement said that the fund will be used to speed up growth and investment in online food delivery and fintech businesses globally. This is the first time that the Cape-town based firm has sold its shares in the Shenzen-based investment firm.
Currently, Naspers is planning a big investment cycle and spending money on building substance in emerging market e-commerce and other online businesses.
The development comes after Tencent said it will sacrifice short-term margins, spending on content and technology in pursuit of growth. Meanwhile, the firm added that it will not sell more shares in the firm for at least three years.
Both Tencent and Naspers are huge believers of the Indian market. Naspers offers services in more than 130 countries. It has also been one of the earliest backers of Indian consumer tech companies. Among its investments include ibibo, OLX, Flipkart, redBus, MakeMyTrip, and Swiggy.
Whereas, since its establishment in 1998, Tencent has maintained steady growth under its user-oriented operating strategies. On June 16, 2004, Tencent went public on the main board of the Hong Kong Stock Exchange.
Tencent has invested close to $1.5 billion in Indian start-ups including Practo, Ola, Flipkart, and Hike.
In India, it has been battling for food delivery and ordering space with its local rival Alibaba. Responding Within a week of Alibaba $200 million investment in Zomato, Tencent-backed Dianping along with Naspers led a $100 million round in Swiggy in February this year.