Tencent to hand $20 billion Meituan stake to shareholders as sales slip

China's Tencent Holdings said on Wednesday it would return capital to shareholders through a dividend distribution of its $20.3 billion stake in food delivery firm Meituan as its sales fell for a second straight quarter.

Meituan said it would maintain its mutually beneficial business relationship with Tencent after the divestment, which comes as the Shenzhen-based tech giant shuts some unprofitable businesses and laying off staff in a bid to return to growth.

The divestment plan, which Reuters reported in August, follows China's regulatory crackdown on its tech groups, which started in late 2020 and took aim at their sprawling empires, bringing their