Tencent slashes Kuaishou stake after leading US$3B Kling AI round
Tencent Holdings has slashed its ownership in Kuaishou Technology from 15.68% to 9.37% by offloading 273 million Class B shares, shortly after spearheading a US$3 billion funding round for Kuaishou's AI video division, Kling AI. This sale indicates that Tencent will no longer be a major shareholder, as reported in a filing to the Hong Kong stock exchange on Monday. While the specific sale price was not revealed, Tencent is anticipated to generate HK$12.56 billion (US$1.6 billion) based on Kuaishou's closing price of HK$46 on that day. Following the announcement, Kuaishou's stock dropped over 6% on Tuesday morning. Kuaishou reassured that this change would not significantly impact its operations and noted Tencent's ongoing confidence in its future. The filing also mentioned Kuaishou's HK$16 billion share buy-back initiative, with 174.84 million Class B shares repurchased for HK$8.35 billion to date.
Key facts
- Tencent reduced its Kuaishou stake from 15.68% to 9.37%.
- Tencent sold 273 million Class B shares.
- The sale is expected to raise HK$12.56 billion (US$1.6 billion).
- Kuaishou shares fell more than 6% on Tuesday morning.
- The divestment came days after Tencent led a US$3 billion financing round for Kling AI.
- Kuaishou's HK$16 billion buy-back programme has repurchased 174.84 million shares for HK$8.35 billion.
- Kuaishou said Tencent remains confident in its long-term prospects.
- The filing was made to the Hong Kong stock exchange on Monday.
Entities
Institutions
- Tencent Holdings
- Kuaishou Technology
- Kling AI
- Hong Kong stock exchange
Locations
- Hong Kong
- China