Tencent distributing JD.com shares, more companies to come?
1. $TENCENT(00700.HK$ is distributing $JD-SW(09618.HK$ shares (HK-listed version) to shareholders. 1 JD.com share for every 21 Tencent shares held.
2. Given this ratio and the JD.com share price of HK$279.20 and Tencent's share price of HK$443, the dividend yield is about 3%.
3. No fractional shares will be distributed. If your holding is not in a multiple of 21 shares, you will be receiving cash instead.
4. It is likely overseas shareholders will get the shares because Tencent shares are held in custody by the brokers. They will be given the shares and in turn credit into the clients' accounts. If you don't want the JD.com shares you can sell them for cash.
5. But it is best to check with your broker. How would they handle odd lots? Different brokers may have different practices.
6. The Ex-Dividend date has been set on 20 Jan 2021. You have to hold your Tencent shares until that date to qualify.
7. The JD.com shares are fungible between the US and HK versions. But due to US securities law, you are not permitted to offer, sell, pledge or otherwise transfer JD.com shares within the US or to US Persons during the first 40 days of the distribution.
8. If you are in China and use the south-bound stock connect to access HK-listed shares, you can hold or sell JD.com shares but not buy them. I believe most will hold it because it is not possible for PRC investors to buy. What is hard to get is more coveted.
9. Tencent explains the move was to exit the investments when the investees become consistently capable of self-financing their future initiatives. Tencent believes that JD.com has now reached such a status.
10. If this is the case, given the large venture portfolio of Tencent's, shareholders might continue to receive dividend in specie for other companies.
11. Based on Tencent's rationale, I would expect shareholders to receive shares in Tesla, Meituan, Sea, Pinduoduo, Kuaishou and Tencent Music since these investment value are sizeable and these companies are big enough to fend for themselves.
12. This means that Tencent shareholders might not need to wait for Tencent share price to recover. Instead, your net worth is likely to increase via such dividend in specie if it continues. This is a value unlocking event by itself because Tencent's investment portfolio has not been adequately valued by the market.
2. Given this ratio and the JD.com share price of HK$279.20 and Tencent's share price of HK$443, the dividend yield is about 3%.
3. No fractional shares will be distributed. If your holding is not in a multiple of 21 shares, you will be receiving cash instead.
4. It is likely overseas shareholders will get the shares because Tencent shares are held in custody by the brokers. They will be given the shares and in turn credit into the clients' accounts. If you don't want the JD.com shares you can sell them for cash.
5. But it is best to check with your broker. How would they handle odd lots? Different brokers may have different practices.
6. The Ex-Dividend date has been set on 20 Jan 2021. You have to hold your Tencent shares until that date to qualify.
7. The JD.com shares are fungible between the US and HK versions. But due to US securities law, you are not permitted to offer, sell, pledge or otherwise transfer JD.com shares within the US or to US Persons during the first 40 days of the distribution.
8. If you are in China and use the south-bound stock connect to access HK-listed shares, you can hold or sell JD.com shares but not buy them. I believe most will hold it because it is not possible for PRC investors to buy. What is hard to get is more coveted.
9. Tencent explains the move was to exit the investments when the investees become consistently capable of self-financing their future initiatives. Tencent believes that JD.com has now reached such a status.
10. If this is the case, given the large venture portfolio of Tencent's, shareholders might continue to receive dividend in specie for other companies.
11. Based on Tencent's rationale, I would expect shareholders to receive shares in Tesla, Meituan, Sea, Pinduoduo, Kuaishou and Tencent Music since these investment value are sizeable and these companies are big enough to fend for themselves.
12. This means that Tencent shareholders might not need to wait for Tencent share price to recover. Instead, your net worth is likely to increase via such dividend in specie if it continues. This is a value unlocking event by itself because Tencent's investment portfolio has not been adequately valued by the market.
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huat huat : How does it impact JD holders in HK?
Alvin Chow 邹咏翰OP huat huat: Short term selling pressure because some of the new shareholders may dump JD shares
101530559 : If I only have 100 shares Of Tencent, does it mean that I would receive 4 shares and a prorated cash Equivalent?
MaMaJun : This is a very good news