Tencent’s voting power to be reduced below 10% following the transaction and proposed share conversion 

Tencent Holdings Limited (“Tencent”; 00700.HK) announced today that it has entered into a transaction to divest an aggregate of 14,492,751 Class A shares of Sea Limited (“Sea”; NYSE: SE), reducing Tencent’s equity interest in Sea from 21.3% to 18.7%. Including proposed voting rights changes, Tencent’s voting power in Sea is expected to be reduced to under 10%. Tencent intends to retain the substantial majority of its equity stake in Sea for the long term and will continue its existing business relationships with the company. Tencent will be subject to a lockup period that restricts further sale of Sea shares by Tencent during the next six months. 

The share sale unlocks a portion of the value of Tencent’s investment in Sea, which has seen significant growth and expansion in its global business operations. The divestment provides Tencent with resources to fund other investments and social initiatives, while retaining a substantial majority of its stake in Sea and continuing to benefit from the company’s future growth. 

If voting rights changes currently pending approval by Sea’s shareholders at a coming general meeting secure approval, Tencent will convert its supervoting Class B shares to Class A shares, and Tencent will terminate its proxy agreement in favor of Forrest Li, Founder, Chairman and Group CEO of Sea Limited.

This press release is not an offer of securities for sale into the United States. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration.