A co-founder of Chinese food delivery giant Meituan sold 2 million of his Hong Kong-listed shares in the company on Monday, cashing out about HK$344 million (US$44.3 million) amid a recent rally in Chinese stocks.
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Mu Rongjun, an executive director and senior vice-president at the Beijing-based on-demand delivery firm, sold the shares at a price of HK$171.8, according to a disclosure filed to the Hong Kong stock exchange on Thursday. His Meituan stake now stands at 1.02 per cent, down from the 1.06 per cent previously. Mu is worth US$3.4 billion, according to Forbes.
Meituan shares rose 3.3 per cent to HK$211.8 in Hong Kong on Friday morning. The stock has rallied 240 per cent since hitting a low in early February.
Mu cut his holdings three months after Meituan announced a plan to buy back shares valued up to US$2 billion. The company said the buy-back was not guaranteed in terms of timing, quantity or price.
Meituan’s second-quarter revenue surged 21 per cent year on year, reaching 82 billion yuan (US$11.6 billion), bolstered by steady growth in its core local commerce operations focused on food and grocery delivery. Profit jumped 142 per cent to 11 billion yuan for the quarter.
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On Thursday, the company announced the issuance of US$2.5 billion in senior notes to professional investors. This includes US$1.2 billion in notes with a 4.5 per cent coupon due in 2028 and US$1.3 billion in notes with a 4.625 per cent coupon due in 2029.