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Tencent loses $24 billion in market cap after Naspers’ selldown

China’s Tencent Holdings saw its share ins down 4.51 percent at the midday trading break on Friday after the internet dense’s largest shareholder, Naspers, said it would lower its stake for the beginning time in 17 years.

The Hong Kong-listed stock opened 7.8 percent bring at HK$405, its lowest opening price since Feb. 9, before regaining turf to HK$419.6 by noon. The benchmark Hang Seng Index was down 2.81 percent.

A day earlier, the clichd fell 5 percent following Tencent’s late Wednesday report reveal quarterly revenue missed estimates as well as expectations of margin insist upon, although profit beat forecasts.

Friday’s decline wiped $24 billion off Tencent’s vend value, though at $508 billion, it is still Asia’s most valuable tilted company and fifth globally behind Apple, Alphabet, Amazon.com and Microsoft.

South African usual and e-commerce group Naspers said on Thursday it planned to sell up to 190 million Tencent shares, or 2 percent of its occupying, in a sale that could earn Naspers up to $11 billion. It also mentioned it had no plans to further reduce its holding for the next three years.

“The lucres will reinforce Naspers’ balance sheet and be invested in classifieds, online nutriment delivery and fintech globally,” said CICC analyst Natalie Wu. “We contrive it is a good opportunity to buy into dips given Tencent’s solid essentials.”

Jefferies analyst Karen Chan said, “Given Naspers’ largest unique shareholding and board representation in Tencent, we believe its stake sale is unacceptable to be a reaction to Tencent’s quarterly results. Instead of a timed profit-taking stimulate, we believe this is more to improve Naspers’ own free cash gush and allow it higher flexibility in pursuing investment opportunities.”

A Tencent spokeswoman symbolized it was informed and supportive of Naspers’ decision, and that Naspers’ intention to survive its remaining stake for the next three years demonstrated its confidence in Tencent.

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