Prosus and Naspers chief executive Bob van Dijk said they had found several large merger and acquisitions opportunities in their sector to be fully priced and had stayed disciplined.

“A direct investment in Tencent gives you a small yield and the ability to redeploy capital elsewhere. “If Naspers wanted to reduce the discount they could work out a way to spin out Tencent directly to shareholders,” rather than offering it alongside other assets within Prosus, he says. Asian shares were mixed on Friday... Get the top news stories delivered directly to your inbox! Prosus is a venture capitalist, making high-risk high-reward investments. Please contact us here http://www.streetinsider.com/signup_content.php.

Prosus, as is well known, owns significant listed stakes in Tencent, Mail.ru, Delivery Hero, and Ctrip. Investors “do not have a great desire to get involved with the Naspers venture capital fund”, Mark Artherton, CEO and head of research at Inteqres in London, told The Africa Report. Following a c. 24% rally in the Tencent share price (Naspers owns a 31% stake of the Hong Kong-listed tech Group, which accounts for >80% of Naspers’ net asset value [NAV)]) from c. 4 December 2019 to Monday’s (13 January) close, we highlight what has happened to the Naspers and Prosus discount to NAV below. As can be seen from Figure 1 , these discounts to NAV have gone pretty much one way since Prosus listed on 11 September 2019. He said they believed this was a step in the right direction, although the board would still need to take a lot more steps to really unwind the discount sustainably. Michael Treherne, a portfolio manager at Vestact, said the rationale for Prosus was that they were buying Naspers shares at a deep discount to its NAV. We will also continue working on a series of initiatives to further address the consolidated discount to net asset value.”. Prosus said it intended to buy back up to $1.37bn of its own shares and up to $3.63bn of … A theory that made a lot of sense to us was that the discount widened during periods when Tencent was appreciating steadily, because the resultant rise in Naspers’ share price caused SA institutional investors to exceed their single-stock exposure limits, thus making them forced sellers of Naspers. He said the share buyback was part of management’s commitment to reduce both Naspers’ and Prosus’ big discount to NAV. “Management and the Naspers and Prosus boards are committed to delivering long-term returns for shareholders.

Wake up to the essential with the Editor's picks. Naspers sold a further 24bn rand (1.5bn euros) worth of Prosus shares in Amsterdam in January. In total, up to $5 billion in shares in Naspers and Prosus will be purchased on the open market on a pro-rata (72.5%/27.5%) basis in line with the economic stakes of both companies in the Prosus/Naspers asset base. With Nigeria's debt market becoming even more unattractive to foreign investors, Nigerian investors’ only viable trading option will be the country’s now bullish stock market. Bob van Dijk, group CEO, Prosus and Naspers. As argued in The Africa Report in March 2019, the dual-class share structure that exists at Naspers ensures effective insider control and is a block on any sustainable narrowing of the discount. © 2020 Independent Online and affiliated companies. MultiChoice Group and the listing of Prosus on Euronext Amsterdam last year. Prosus share price leapt to R1 650 on Friday, while Naspers shares also gained more than 4 percent to R3 171. Artherton points to the loss of control over proceeds from Tencent which investing in Nasper entails. It’s hard to apply much from a fundamental perspective to predict where this discount should be and hence where it goes from here. DURBAN - PROSUS shares rose more than 5 percent on the JSE on Friday after the Dutch technology giant said it intended to buy back up to $5 billion (about R81bn) in its own and Naspers’ shares, in an effort to reduce the discount between the companies’ share prices and their underlying assets. Underlying assets have significant growth potential. Prosus said it intended to buy back up to $1.37bn of its own shares and up to $3.63bn of Naspers shares after the release of its half-year results, which were expected on November 23. Naspers’s Internet division Prosus today announced it is planning to acquire up to $5 billion in total of Naspers and Prosus shares.

DON'T MISS : Talking Africa New Podcast – As #EndSARS escalates, Nigerians ask: who's in charge, By David Whitehouse Management has ample options at hand to address the discount. At the end of the day, having a smaller discount to NAV would be a good thing for existing shareholders,” Treherne said. Opinion on the ultimate profitability of the food delivery vertical is very divided (Prosus management’s extreme bullishness notwithstanding!).

About Prosus Prosus' NAV discount has widened considerably since its spinoff from Naspers. Discount to net asset value is a pricing situation that occurs when an ETF's or mutual fund’s market trading price is lower than its daily net asset value (NAV). At the end of the day, having a smaller discount to NAV would be a good thing for existing shareholders,” Treherne said. “The underlying issues surrounding the discount given by the market to Naspers were not eliminated or reduced by the listing of Prosus,” according to Atherton. Biden rebuilding 'blue wall' in race for the White House, Fox's Arizona call for Biden flipped the mood at Trump headquarters, Why the US Supreme Court will not turn election for Trump - analysis, Portland: Riot declared as protesters demand every vote be counted, Kosovo president resigns to face war crimes charges, England wakes up to second national lockdown set to last four weeks, Biden wins two key states, heads closer to magic mark, Harris’s ancestral village in India gets festive as Biden leads count, Putin backs idea of urging countries to pass laws to protect sentiments of believers, North Pole time capsule washes up on Irish coast, Death and destruction as Storm Eta batters Central America, India Supreme Court asks government to ban use of disinfectant tunnels to prevent COVID-19 spread, Trump Took For Granted “The Bayonet Vote,” And It May Have Cost Him The Election, Hong Kong: People invited to snitch on their neighbours, Saudi eases foreign workers’ restrictions, Oct. 30, 2020OSE Special Quotations Updated (Contract month: October 2020): FTSE China 50 Index, Final Settlement Prices Special Quotations, etc.

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