The move is aimed at closing a gap between the market value of Prosus/Naspers and that of the 28.9% stake in Tencent they own.
And, you know, we have Tencent support in this decision." "It's something we had to consider in arriving at this decision. Tencent said it supports the move and expects the impact of the share sale to be "limited". The move is aimed at closing a gap between the market value of Prosus/Naspers and that of the 28.9% stake in Tencent they own, which is currently worth about $136 billion. - The move is aimed at closing a gap between the market value of Prosus/Naspers and that of the 28.9% stake in Tencent they own, which is currently worth about $136 billion. - Tencent said it supports the move and expects the impact of the share sale to be "limited".
South African internet group Naspers, Tencent's biggest shareholder, has abandoned a pledge not to sell stock in China's most valuable company as it seeks ...
Shares in the market heavyweight rocket after it announces an open-ended buyback process.
A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily. The JSE extended the previous session’s gains on Monday, lifted by heavyweight Naspers, while global markets had a mixed start to the week as Friday’s rally ran out of steam. Shares in Naspers, Africa’s largest listed investment group, rocketed after it announced an open-ended buyback process aimed at tackling its discount, fuelled by the steady sale of shares in Chinese media giant Tencent...
Naspers has finally realised the value of simplicity. The South African company's main asset is a 29% shareholding in Chinese internet giant Tencent ...
The programme would remain in place as long as the discount was at “elevated levels”. To avoid weighing on the Chinese company’s share price, Naspers and Prosus say they will only sell up to 5% of the average daily trading turnover, at most about 1 million shares a day. And by keeping his wording vague – the buybacks will last as long as the discount remains “elevated” – van Dijk has scope to slow the pace if the gap narrows as planned. A pledge on Monday to slowly sell some Tencent stock and return the cash to shareholders has the merits of being both intelligible and reassuring. Despite spinning off an Amsterdam-listed subsidiary, Prosus (PRX.AS), in 2019, the gap has sometimes widened to 60% or more. But Naspers has consistently traded at a big discount to that stake, while tying itself in increasingly complicated knots to close the gap.
Naspers's share price rocketed on the news of a share repurchase programme funded by the sale of Tencent shares, but some investors worry that it won't ...
What this means is that the OLX Group is profitable, but not the newer business OLX Autos. Similarly, the Brazilian restaurant business iFood is profitable, but not its extension into groceries or fintech. The buyback programme is likely to boost net asset value per share for both Prosus and Naspers, he says. “Management is selling down the group’s most valuable, cash-generating asset, putting permanent pressure on the Tencent share price. The ultimate objective is to bring the share price and net asset value more in line. In both 2018 and in 2021 Naspers sold a 2% stake in the Chinese giant, raising almost $10-billion in 2018 and $14.6-billion in 2021. “The reality that we are facing is extraordinary. As a result, overall trading profit fell by 6% to $5-billion. This has been tried before, he adds. This step is about making use of that market inefficiency.” We made a promise to you that we’ll never erect a paywall and we intend to keep that promise. We also want to continually improve your reading experience and you can help us do that by registering with us. This is the third time that Naspers has announced it will sell down its stake in Tencent, but this time it’s different.
Naspers and its subsidiary Prosus will slowly be selling off parts of its stake in Chinese tech giant Tencent in order to fund an open-ended programme to ...
"The discount to the group's sum of the parts increased to an unacceptable level. The board of Naspers intends to declare the dividend as soon as practicable," the group said in a separate update. "The combination of the war in Ukraine, higher inflation and rising interest rates drove up the cost of capital and increased uncertainty," it said. "At elevated levels of trading discount, however, the Naspers board and Prosus board believe that repurchasing Prosus shares and Naspers shares and monetising part of the group's Tencent holding in order to implement the repurchase programme, is in the best interests of Prosus, Naspers and their respective shareholders." The programme is expected to result in the sale of Tencent shares, and buyback of Naspers and Prosus shares on a daily basis. Naspers share price is currently down nearly 24% since January, and fell over 35% since June 2021.
Prosus NV is planning to sell more of its $134 billion stake in Chinese internet giant Tencent Holdings Ltd. to finance a buyback program, ...
Tencent declined in Hong Kong on Monday as investors pondered the extent to which Prosus, the Chinese company’s biggest shareholder, will unload its stock. Prosus NV is planning to sell more of its $134 billion stake in Chinese internet giant Tencent Holdings Ltd. to finance a buyback program, reversing a pledge to hold onto the full shareholding.
After years of attempting a range of alternatives, Naspers/Prosus has found key to unlocking the massive discount at which it shares trade.
I think what we like is that we have exposure to models that we think are really good and we feel good about our food portfolio. I think the flip side of it is that the cost of capital is up. I think market pricing is at a level that I think the discrepancy, if I look at our portfolio between operational performance and market appreciation is very large. But if we see the right thing at the right place, we might make a move, but the bar is high. I think we are really confident about our own assets, If I look at the performance of IFood in Brazil, it gives me a lot of reasons to smile. If I look at the results of Just eat, though, I don’t think we missed out. When I look at the very strong operational performance and I compare that to where markets are trading, there is really a very significant disconnect. Do the second question look, the way we said it is we will continue to do this as long as the discount is at our levels. But at the same time, there is actually a big opportunity to unlock value for shareholders and to address that disconnect. So the program is designed to increase net asset value per share so it takes advantage of those processes and Naspers trading discounts to the underlying net asset value. We see that we have core businesses that are profitable and increasing profitability. At a telecon today, CEO Bob van Dijk unpacked a fresh strategy that unlocks the group’s previously frozen asset, its 31% holding in Chinese group TenCent. The market celebrated the news, pushing Naspers and Prosus shares up 15%.
Analysis of Invicta and Naspers/Prosus results and how to find a balance between different components of ESG.
Naspers CEO Bob van Dijk. Getty Images. The market welcomed Naspers' plan to sell parts of its stake in Tencent and buy back its own shares. Naspers ...
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Naspers shares jumped 15% in early morning trade after the Naspers/Prosus group announced its results early Monday morning. Prosus opened nearly 14% higher ...
“These businesses have good traction with consumers and high potential to generate sustainable returns over the long term. The income statement shows that interest paid on debt increased from $268 million in the previous financial year to $411 million in the last. But our operations remain strong, and with improved profitability at the core, we are investing to scale into adjacent opportunities across our segments,” says Sgourdos. In addition to selling expensive Tencent shares and using the proceeds to buy cheap Naspers shares, repurchased shares will be cancelled and the reduction in the number of issued shares will increase NAV per share. However, this pales in significance to gains and income from the disposal of the Tencent shares and the shares in JD.com that Naspers/Prosus received as a special dividend from Tencent during the last financial year. Naspers’s results also seemed to have pleased investors. Naspers and Prosus announced an “ open-ended share repurchase programme” of Naspers and Prosus shares. Prosus opened nearly 14% higher than Friday’s close. “Building on the prior year’s performance, the group’s e-commerce portfolio delivered revenue growth of 49% to $10.7 billion,” notes management in their commentary to the results. Naspers delivered strong revenue growth with operations posting a profit when looking at core earnings, a figure management presents to measure the underlying operational progress of its portfolio of new and growing e-commerce investments. Naspers extended its gains to close the day 22.79% up, while Prosus ended the day up 18.9% in what one can describe as a vote of confidence in management’s announcement that the companies will steadily sell down their stake in Tencent and return the proceeds to shareholders by way of buying back Naspers and Prosus shares. More than 3.5 million Naspers shares to the value of more than R8.1 billion traded, compared to average daily trade of less than one million shares worth about R1.5 billion.
Bob van Dijk, head of Dutch technology investment company Prosus and its controlling shareholder Naspers, got paid about 4 percent less this year.
Group revenue, measured on an economic-interest basis, grew 24 percent to $35.6 billion. In the year to date, the share price of Naspers has tanked 23.84 percent, while Prosus in the year to date saw its share price fell 33.16 percent. Bob van Dijk, head of Dutch technology investment company Prosus and its controlling shareholder Naspers of South Africa, got paid roughly 4 percent less this year with the e-commerce firm facing headwinds in the year to March.
Group scraps long-term bonuses for the current year in a short-term incentive.
Naspers remuneration policy has been criticised in the past for being opaque and unjustified. Shareholders and critics said that executives were largely benefiting from an appreciation in the Naspers share price, which has been driven mostly by its one-third stake in Chinese internet giant Tencent... Naspers executives are putting their money where their mouth is with pay for the 2023 financial year tied directly to the success of an ambitious attempt to close a value gap between the group’s market worth and its underlying assets.