Tencent Holdings sells $3b worth of shares in Singapore's Sea

The Chinese internet giant now only has an 18.7% stake in the Singapore-based firm.

Chinese internet giant Tencent Holdings Ltd. has cut its stake in Singaporean gaming and e-commerce firm Sea Ltd., selling shares worth about $3b.

Tencent sold 14.5 million shares in Sea at $208 each in a block trade, based on a Reuters report.

The sale of shares pulled Tencent’s stake in the Sea down to 18.7% from 21.3%.

In a statement, the Chinese company said the divestment in Sea provides them with “resources to fund other investments and social initiatives.”

Despite its sale of shares, Tencent “intends to retain the substantial majority of its stake in Sea for the long term,” according to Reuters.

Tencent and its affiliates have also given Sea an irrevocable notice to convert all their Class B ordinary shares,” the report said.

The Chinese company has also agreed to terminate its proxy to Sea CEO Forrest Li, after the conversion, the report added.

According to Reuters, all outstanding class B shares of Sea will be beneficially owned by Li upon conversion.