Technology investment firm Prosus and its South African parent Naspers today rejected as "untrue" a report that they are in talks to sell their large stake in Chinese software and gaming giant Tencent.
Naspers shares were up nearly 11%, and Prosus shares rose nearly 9% in morning trade yesterday on the speculation.
In a pre-market statement, Amsterdam-based Prosus said an article in Asian Tech Press citing unnamed sources saying that Naspers was in talks with a group of investors led by state-backed CITIC of China to sell its entire Tencent stake was "speculative and untrue".
Prosus holds a 28% stake in Tencent worth $70 billion (R1.2 trillion) at current prices. It has said it intends to sell the stake down gradually to fund a share repurchase programme.
"The Naspers Board and Prosus Board reiterate their continued confidence in Tencent's long-term prospects and continue to believe that the share repurchase programme is in the best interests of Prosus, Naspers and their respective shareholders," they said in a statement.
REUTERS