Tencent vows to ‘distribute’ $20.3bn Meituan shares to investors

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City AM

By Louis Goss Tencent has vowed to give its shareholders $20.3bn (£17.4bn) worth of shares in Chinese food delivery firm Meituan as it seeks to reduce its holdings in China’s tech sector. The Shenzhen conglomerate’s “special dividend” comes as its sales dropped two per cent year-on-year, to £16.6bn, on the back of a five per cent drop in its revenues from its online advertising business, to £2.6bn. Tencent’s plans to divest from its 17 per cent stake in Meituan comes as the tech giant seeks to appease Chinese regulators amid a crackdown on the sector being led by Beijing. China’s push to break…

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