BRIEF: Tencent sells down Futu stake

FUTU.US

Internet giant Tencent (0700.HK) has raised about $206 million by selling down its stake in online brokerage Futu Holdings Ltd. (FUTU.US), Bloomberg reported on Friday. It sold the stock at a premium of about 5.9% to its last closing price, according to Bloomberg, which first reported the sale a day earlier without naming the seller.

The sale would represent around 2% of Futu’s shares, based on its market value at Wednesday’s close. Tencent held about 22% of Futu’s shares at the end of last year, according to Futu’s latest annual report filed in April. Futu founder Li Hua was one of Tencent’s earliest employees, joining the company in 2000 and later founding its video department before leaving to set up his online brokerage.

The sale is part of Tencent’s recent offloading of many of its stakes in its various investments outside its core entertainment and social media businesses.

By Doug Young

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