Sea Limited sets annual meeting with plan to boost class B voting power

Seeking Alpha2022-01-04

Sea Limited has set up its annual meeting with a plan to expand voting power of its ClassB shares, consolidating control with its founder, chairman and CEO.

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At the Feb. 14 meeting, shareholders will take up a company proposal to boost the voting power of each Class B share from three votes to 15 votes.

Tencent Holdings plans to convert all of its Class B ordinary shares to Class A ordinary shares on the passing of that special resolution. And that would leave all outstanding Class B ordinary shares owned by Chairman/CEO and founder Forrest Li.

Tencent also will end the proxy by which it gave Li the voting power for its Class B shares.

Running through the math, Li's class B shares post-conversion would grant him about 57% of total voting power (up from 52% today), and Tencent's voting power is expected to be less than 10%.

The special resolution requires 75% approval from voters at the meeting.

Earlier, BofA upgraded Sea to Buy from Neutral.

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