Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is made pursuant to PN15 and Rule 134 under the Securities Act. It is for information purposes only and does not constitute, and is not intended to be, an invitation or offer to acquire, purchase or subscribe for, or offer to sell or a solicitation of any offer to buy securities in Hong Kong, the United States or elsewhere. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Neither this announcement nor any content contained herein shall form the basis of any contract or commitment whatsoever. Such offer or invitation will be made only by means of a prospectus that will contain detailed information about the issuer and management, as well as financial statements and only in jurisdictions in which such offer or invitation may legally and validly be made.

UPDATE IN RELATION TO THE PROPOSED SPIN-OFF AND

SEPARATE LISTING OF

TENCENT MUSIC ENTERTAINMENT GROUP

The Board is pleased to announce that the pricing of the Tencent Music ADSs was fixed on 11 December 2018 (New York time) and the trading in the ADSs on the NYSE will commence on 12 December 2018 (New York time).

The ADS Offer Price was fixed at US$13.00 (equivalent to approximately HK$101.74) per ADS.

Out of the 82,000,000 ADSs being offered under the Offering, 41,029,829 new ADSs will be sold by Tencent Music (representing approximately 2.51% of the issued share capital of Tencent Music as enlarged by the issue of new Class A Shares represented by ADSs before any exercise of the over-allotment option and assuming full subscription under the Concurrent Private Placement) and 40,970,171 ADSs will be sold by the Selling Shareholders. Tencent Music has granted the Underwriters an over-allotment option, exercisable within 30 days from the date of Tencent Music's final prospectus, to purchase up to 12,300,000

additional ADSs. Assuming the over-allotment option is not exercised and full subscription under the Concurrent Private Placement, the total gross proceeds of the Offering and Concurrent Private Placement are expected to be approximately US$1.10 billion (equivalent to approximately HK$8.61 billion) and the gross proceeds to Tencent Music from the sale of new ADSs are expected to be approximately US$0.57 billion (equivalent to approximately HK$4.46 billion). Each ADS will represent two Class A Shares.

DISTRIBUTION

In accordance with the requirements of PN15, the Board proposes to give due regard to the interests of the Shareholders by providing qualifying Shareholders with an assured entitlement of a certain number of Distribution ADSs and / or the payment of cash by way of the Distribution (subject to the consummation of the Proposed Spin-off and the satisfaction of applicable closing conditions). A non-qualifying Shareholder will not receive the Distribution ADSs, and subject to such non-qualifying Shareholder holding the required minimum number of Shares (such number to be determined by the Company) on the relevant record date, will instead receive cash in lieu of the relevant number of Distribution ADSs to which he/she/it would otherwise have been entitled. A resolution is expected to be passed by a committee appointed by the Board on 13 December 2018 for the purpose of making a declaration of a special dividend to be satisfied by way of the Distribution. Details of the terms of the Distribution have not yet been finalised as at the date of this announcement. It is expected that a further announcement on the terms of the Distribution will be made by the Company on 13 December 2018.

Shareholders should note that the Distribution is conditional upon completion of the Proposed Spin-off, which itself is conditional upon the satisfaction of certain conditions including, without limitation, market conditions. If the Proposed Spin-off does not proceed for any reason, the Distribution will not be made. Shareholders and potential investors of the Company should therefore exercise caution when dealing in the securities of the Company.

References are made to the Company's announcements dated 8 July 2018 and 3 December 2018 in respect of the Proposed Spin-off.

PRICING AND COMMENCEMENT OF TRADING ON THE NYSE

The Board is pleased to announce that the pricing of the Tencent Music ADSs was fixed on 11 December 2018 (New York time) and the trading in the ADSs on the NYSE will commence on 12 December 2018 (New York time).

The ADS Offer Price was fixed at US$13.00 (equivalent to approximately HK$101.74) per ADS. Out of the 82,000,000 ADSs being offered under the Offering, 41,029,829 new ADSs will be sold by Tencent Music (representing approximately 2.51% of the issued share capital of Tencent Music as enlarged by the issue of new Class A Shares represented by ADSs before any exercise of the over-allotment option and assuming full subscription under the Concurrent Private Placement) and 40,970,171 ADSs will be sold by the Selling Shareholders.

Tencent Music has granted the Underwriters an over-allotment option, exercisable within 30 days from the date of Tencent Music's final prospectus, to purchase up to 12,300,000 additional ADSs. Assuming the over-allotment option is not exercised and full subscription under the Concurrent Private Placement, the total gross proceeds of the Offering and Concurrent Private Placement are expected to be approximately US$1.10 billion (equivalent to approximately HK$8.61 billion) and the gross proceeds to Tencent Music from the sale of new ADSs are expected to be approximately US$0.57 billion (equivalent to approximately HK$4.46 billion). Each ADS will represent two Class A Shares.

ASSURED ENTITLEMENT

In accordance with the requirements of PN15, the Board proposes to give due regard to the interests of the Shareholders by providing qualifying Shareholders with an assured entitlement of a certain number of Distribution ADSs and / or the payment of cash by way of the Distribution (subject to the consummation of the Proposed Spin-off and the satisfaction of applicable closing conditions). A non-qualifying Shareholder will not receive the Distribution ADSs, and subject to such non-qualifying Shareholder holding the required minimum number of Shares (such number to be determined by the Company) on the relevant record date, will instead receive cash in lieu of the relevant number of Distribution ADSs to which he/she/it would otherwise have been entitled. A resolution is expected to be passed by a committee appointed by the Board on 13 December 2018 for the purpose of making a declaration of a special dividend to be satisfied by way of the Distribution.

Details of the terms of the Distribution have not yet been finalised as at the date of this announcement. It is expected that a further announcement on the terms of the Distribution will be made by the Company on 13 December 2018.

Shareholders should note that the Distribution is conditional upon completion of the Proposed Spin-off, which itself is conditional upon the satisfaction of certain conditions including, without limitation, market conditions. If the Proposed Spin-off does not proceed for any reason, the Distribution will not be made. Shareholders and potential investors of the Company should therefore exercise caution when dealing in the securities of the Company.

DEFINITION

In this announcement, unless the context otherwise requires, the following expressions shall have the following meanings:

Term

Definition

"ADS(s)"

American depositary shares to be issued pursuant to a deposit agreement between Tencent Music and The Bank of New York Mellon, each representing two Class A Shares in Tencent Music, which will be listed on the NYSE

"ADS Offer Price"

US$13.00 (equivalent to approximately HK$101.74), the initial public offer price of an ADS under the Offering

"Board"

the board of Directors

"Class A Share(s)"

Class A ordinary share(s) with par value of US$0.000083 each of Tencent Music (each Class A Share is entitled to one vote)

"Company"

Tencent Holdings Limited, a limited liability company organised and existing under the laws of the Cayman Islands and whose Shares are listed on the Stock Exchange

"Concurrent Private

Placement"

the purchase by the Company (subject to the completion of the Offering) of a certain number of Class A Shares with an aggregate value of up to HK$250 million, calculated based on the ADS Offer Price

"Director(s)"

director(s) of the Company

"Distribution"

the proposed special dividend of the Company, to be satisfied by the distribution in specie of ADSs and / or the payment of cash to qualifying Shareholders

"Distribution ADSs"

"HK$"

Hong Kong dollars, the lawful currency of Hong

Kong

"Hong Kong"

the Hong Kong Special Administrative Region of the

People's Republic of China

"NYSE"

the New York Stock Exchange

"Offering"

the initial public offering of ADSs in connection

with the Proposed Spin-off

"PN15"

Practice Note 15 of the Rules Governing the Listing

of Securities on the Stock Exchange

"Proposed Spin-off"

the proposed spin-off listing of the Company's

majority-owned online music entertainment business

operated by Tencent Music involving the Offering

and the proposed separate listing of the ADSs on the

NYSE

"Securities Act"

the United States Securities Act of 1933, as amended

"Selling Shareholders"

the shareholders of Tencent Music who proposed to

sell certain number of ADSs in connection with the

Proposed Spin-off

"Share(s)"

ordinary share(s) of HK$0.00002 each in the share

capital of the Company (or of such other nominal

amount as shall result from a sub-division,

consolidation, reclassification or reconstruction of

the share capital of the Company from time to time)

"Shareholder(s)"

holder(s) of the Share(s)

"Stock Exchange"

The Stock Exchange of Hong Kong Limited

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the ADSs to be distributed to Shareholders pursuant to the Distribution

qualifying

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Tencent Holdings Ltd. published this content on 12 December 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 December 2018 00:54:02 UTC