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.
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.