(Yicai Global) April 8 -- Shares of Tencent Holdings declined for a second day after the Chinese tech giant’s biggest shareholder sold 2 percent of its holding, pocketing HKD114.2 billion (USD14.7 billion).

Tencent [HKG: 0700] ended 1.5 percent down at HKD620 (USD79.66), after opening 2.5 percent lower. The stock retreated 3.8 percent yesterday.

Prosus sold 191.89 million shares, cutting its stake to 28.9 percent, Shenzhen-based Tencent said today in a Hong Kong stock exchange filing. In a statement after the market closed yesterday, Prosus said it planned to sell up to 192 million shares in a price range from HKD575 to HKD595 through its subsidiary MIH TC Holdings.

Amsterdam-based Prosus said it will not sell any more Tencent shares for at least the next three years, in line with its long-term belief in the potential of the business.

“The proceeds of the sale will increase our financial flexibility, enabling us to invest in the significant growth potential we see across the group, as well as in our own stock,” said Chief Executive Bob van Dijk.

The return on its investment is significant. Prosus, which is owned by South Africa’s Naspers, spent USD32 million for a 46.5 percent stake in Tencent in 2001. Tencent later issued additional shares, causing Prosus’ stake to fall. It will no longer be Tencent’s controlling shareholder after the latest transaction.

In March 2018, Prosus sold a 2 percent stake for HKD76.9 billion, and said it would not sell again for another three years. Tencent’s shares fell from around HKD400 to about HKD250 at that time.

Tencent’s market value is HKD6.04 trillion today, meaning that Prosus’ 30.9 percent stake was worth HKD1.87 trillion. The HKD1.87 trillion and the HKD76.9 billion it cashed out in 2018 add up to about USD250 billion, a return on the original investment of up to 7,800 times.

That sale came at a time when Tencent was embroiled in problems over game licenses, and the firm was performing poorly, Us Tiger Securities’ investment research team told Yicai Global. But Tencent is in a stronger position now and there is no basis for a sharp drop in fundamentals, so the sale will not affect it in the long run, they said.

Editors: Emmi Laine, Tom Litting