China’s Tencent Music announces biggest ever $1b share buyback

Tencent Holding Ltd

China’s Tencent Music Entertainment Group announced a $1 billion share repurchase plan, its biggest, late on Sunday, days after the U.S. securities regulator adopted stricter measures for foreign companies listed on American stock exchanges.

The Chinese music streaming company may buy back up to $1 billion of its Class A ordinary shares in the form of American depositary shares during a twelve-month period starting March 29, it said in a statement.

Shares in dual-listed Chinese companies including Tencent Music fell sharply last week after the U.S. Securities and Exchange Commission (SEC) said it would kick out foreign firms from U.S. exchanges if they failed to comply with U.S. auditing standards.

The company’s shares were further pressured on Friday after a sell off in its stock – and those of several others such as Baidu Inc and ViacomCBS Inc – by Goldman Sachs, according to an email to clients seen by Bloomberg News.

Bloomberg and the Financial Times on Saturday reported that Goldman liquidated more than $10 billion worth of stocks in these companies in block trades.

CNBC reported that the selling pressure was due to liquidation of positions by family office Archegos Capital Management.

U.S.-listed shares of Tencent Music lost more than a third of their value last week.

Reuters

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.