[ad_1]
Executives of Tencent Music Entertainment celebrate the company’s IPO at the New York Stock Exchange (NYSE) in New York, United States, December 12, 2018
Bryan R Smith | Reuters
GUANGZHOU, China – Tencent Music Entertainment Group on Monday announced plans to repurchase up to $ 1 billion in stock, after the US-listed stock suffered a huge drop last week.
Redemptions can begin on Monday and will take place over the next 12 months.
Tencent Music is the online music arm of Chinese tech giant Tencent, which operates streaming services and applications. The company, which is listed on the New York Stock Exchange, lost about a third of its value last week amid a sell-off in Chinese tech stocks.
Part of the sale came after the United States’ Securities and Exchange Commission (SEC) passed legislation that could lead to the delisting of foreign companies that do not follow the new audit rules.
But new pressure came on Friday after Archegos Capital Management was forced to liquidate positions it held in some big Chinese tech names, CNBC reported.
Tencent Music will repurchase Class A common stock in the form of US custodian shares, it said in a statement.
“The share buyback program is a strong indication of the board’s confidence in the business outlook and long-term strategy of the company, and we believe it will ultimately benefit TME (Tencent Music Entertainment) and create value for its shareholders, “Tong Tao Sang, chairman of the board, said.
Source link
