Tencent Holdings Limited (SEHK:700) has sold $3 billion of shares in Sea Limited (NYSE:SE) as it seeks funds for new initiatives and philanthropic efforts to aid wealth redistribution. The Chinese internet giant priced 14.5 million shares in Sea at $208 each, the bottom end of an indicative range, according to terms of the deal obtained by Bloomberg News. The offer price represents a discount of 6.9% to Sea's close on January 3, 2022.

Tencent is reducing its holding in Sea to 18.7%, it said in a statement. The divestment will provide the Shenzhen-based company 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,” it said. Tencent has agreed not to sell further Sea shares for the next six months, the terms show.

Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley are arranging the sale.