Tencent hands shareholders $16.4 billion windfall in the form of JD.com stake By Reuters

Tencent hands shareholders .4 billion windfall in the form of JD.com stake By Reuters
Tencent hands shareholders .4 billion windfall in the form of JD.com stake© Reuters. FILE PHOTO: A Tencent logo is seen in Beijing, China September 4, 2020. REUTERS/Tingshu Wang

By Sophie Yu and Scott Murdoch

BEIJING/HONG KONG (Reuters) – Chinese gaming and social media company Tencent will pay out a $16.4 billion dividend by distributing most of its JD (NASDAQ:).com stake, weakening its ties to the e-commerce firm and raising questions about its plans for other holdings.

The move comes as Beijing leads a broad regulatory crackdown on technology firms, taking aim at their overseas growth ambitions and domestic concentration of market power.

Tencent said on Thursday it will transfer HK$127.69 billion ($16.37 billion) worth of its JD.com stake to shareholders, slashing its holding in China’s second-biggest e-commerce company to 2.3% from around 17% now and losing its spot as JD.com’s biggest shareholder to Walmart (NYSE:).



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