SINGAPORE, July 6 (Reuters) - Tencent Mobility, a unit of Tencent Holdings, is seeking to raise up to $1.55 billion by selling shares in Chinese short-video company Kuaishou Technology, according to a term sheet seen by Reuters on Monday.
Here are more details from the term sheet:
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The Tencent unit is offering about 273 million Kuaishou Class B shares at HK$43.15 ($5.50) to HK $44.53 each. The range values the sale at about $1.50 billion to $1.55 billion.
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The offer price represents a discount of about 3.2% to 6.2% to Kuaishou's last close of HK$46.00 on Monday.
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The sale is fully secondary, meaning Kuaishou will not receive any money from the deal. Tencent Mobility will receive the proceeds.
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Kuaishou Technology said in an exchange filing later in the day that Tencent had disposed of an aggregate 272.9 million shares of Kuaishou through an off-market block trade.
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Following the disposal, Tencent's stake in Kuaishou will decrease to about 9.37% from 15.68%, and the former will cease to be a substantial shareholder of Kuaishou.
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Kuaishou also said it had repurchased 174.84 million Class B shares worth HK$8.35 billion ($1.06 billion) under its HK$16 billion share repurchase programme.
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The deal is expected to be settled on Thursday.
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Kuaishou runs one of China's major short-video and livestreaming platforms, according to its website.
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Tencent did not immediately respond to Reuters requests for comment sent outside regular business hours.
($1 = 7.8424 Hong Kong dollars)
Reporting by Yantoultra Ngui and Rajasik Mukherjee; Editing by Joe Bavier and Anil D'Silva
Source: Reuters