Tencent to Distribute $20 Billion Meituan Stake as Dividend
- Meituan dividend follows plan to hive off its stake in JD.com
- Tencent is accelerating an exit from vast internet portfolio
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Tencent Holdings Ltd. pledged to distribute the majority of its shares in meal delivery giant Meituan to investors, as China’s social media leader ramps up plans to reduce its extensive holdings across the world’s largest internet industry.
Tencent, which had announced plans to pare its stake in online retailer JD.com Inc., will dole out more than 958 million Class B stock in Meituan as a special dividend to existing shareholders. Tencent announced the move as it reported revenue shrank for the second straight quarter, underscoring the extent to which China’s worsening economy is hurting its biggest private corporations.