A Meituan (HKG:3690) shareholder is winding down its stake in the Chinese food-delivery app as the firm prepares to enter territories the shareholder already has investments in, Bloomberg News reported Wednesday.
Prosus reportedly sold $250 million in Meituan shares in the last two weeks with plans to sell more as it seeks to funnel proceeds to its other e-commerce businesses, Bloomberg reported, citing people familiar with the matter.
The tech investment company held 257.5 million shares in Meituan valued at $4.2 billion as of Tuesday, representing a stake of less than 5% in the business, Bloomberg reported.
The sale comes as Meituan prepares to enter regions such as Brazil where Prosus' iFood app is dominant, and its entry in the Middle East brought it head-to-head against Talabat, which is indirectly owned by Prosus, the report said.
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