Reuters reveals Tencent plans to divest Meituan stake worth $24 bln; shares fall

Reuters was first to report China’s Tencent Holdings plans to sell all or a bulk of its $24 billion stake in food delivery firm Meituan to placate domestic regulators and monetise an eight-year-old investment. The planned sale comes against the backdrop of China’s sweeping regulatory crackdown since late 2020 on technology heavyweights. Shares of Hong Kong-listed Meituan fell more than 10% after Reuters revealed the news. Tencent shares dropped more than 2% in Tuesday afternoon trade before recovering to be up 1%.