Chinese take out platform Meituan saw its stock drop more than 4% on July 31, hitting a two-week low as Prosus, a major shareholder, quietly offloaded around $250 million worth of shares. As of this week, Prosus holds less than 5% of Meituan’s total shares, raising questions about the company’s future prospects.
The stock slump comes as Meituan continues its aggressive international expansion. In May, founder Wang Xing announced a $1 billion investment to build a national delivery network in Brazil, directly competing with Prosus-backed iFood. This move, coupled with Meituan’s expansion in the Middle East under the Keeta brand, has intensified competition in global markets. Keeta, which rapidly captured 10% of Saudi Arabia’s food delivery market, poses a growing threat to Prosus’ investments, including Talabat, its platform in the UAE. [Jiemian, in Chinese]
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