Hong Kong Chinese technology giant Tencent is reportedly looking to sell all or a large part of its $24 billion stake in food supplier Meituan, according to insiders. With this, the WeChat owner wants to appease the Chinese supervisory authorities and make money, four people familiar with the matter told Reuters.
Tencent joined Meituan’s competitor Dianping in 2014, which merged with Meituan a year later. Since 2020, the Chinese authorities have been targeting technology giants such as Tencent or Alibaba, whose market power is a thorn in their side. Tencent holds a 17 percent stake in Meituan. The stake is expected to be sold via the stock exchange as part of a so-called block trade.
On the Hong Kong Stock Exchange, Meituan shares fell by more than ten percent, Tencent securities lost more than two percent.