Tencent Holdings (TCEHY), the Chinese tech giant, is seeking to raise as much as $1.55 billion by selling part of its position in Kuaishou Technology (KUASF), a short-video app operator, through a block trade. The deal involves about 273 million Kuaishou shares, representing a 7.5% stake, according to terms seen by Bloomberg News.
The shares are being offered at HK$43.15 to HK$44.53 each, implying a 3.2% to 6.2% discount to Kuaishou's Monday closing price. Investors may view the pricing range as important for near-term sentiment around Kuaishou, while the size of the transaction could also draw attention to Tencent's capital allocation and remaining exposure to the company.
The sale comes shortly after Tencent joined a $2.8 billion financing round for Kuaishou's Kling AI, the creator of one of China's most popular generative video services. Tencent is expected to face a 90-day lockup on its remaining stake after the block trade, with Goldman Sachs Group, a global investment banking firm, and Morgan Stanley, a global financial services company, arranging the deal.