But the windfall gains created a headache for Naspers. On Jan. 21, Naspers proposed selling more Prosus shares to institutional investors in Europe, and closed the sale the very next day. Naspers holds 72% of Prosus and Prosus owns 31% of Tencent. Prosus also gives funds restricted to investing in European-listed companies the opportunity to get exposure to China's internet sector for the first time, Verster added. Most stock quote data provided by BATS. 7:59 AM EDT, Mon March 25, 2019, PHOTO: As a result, Naspers traded at a discount of about 30%-35% of the value of its assets, said Jean Pierre Verster, founder and CEO of Protea Capital Management. The stock sale marks the first time Naspers is selling any of its stake in Tencent, which it has held since 2001 when it spent $34 million on the shares, reported The Wall Street Journal. American actor and tech investor Ashton Kutcher speaks to CNN about his urging of EU policymakers to grant tech giants like Facebook and Google a reprieve from new privacy rules that would prohibit them from using automatic detection tools to combat child pornography. Naspers head of investor relations Meloy Horn told Moneyweb last week that the group has no plans to sell or unbundle its stake in Tencent, viewing it as an appreciating asset. Naspers, then, is effectively a geared play on a Tencent stake which the Johannesburg market is structurally unable to accurately value. All rights reserved. Naspers Listing Looks to Unlock Value in $122 Billion Tencent Stake Africaâs most valuable company has set a July listing in Amsterdam, which will hold its internet assets Verification email has been resent. (Photo by Robyn Beck/AFP/Getty Images), PHOTO: Its stake in Tencent, which it bought for $32 million in 2001, was getting way too big for South African markets. Following the Prosus listing, Naspers' weighting in Johannesburg's top 40 should fall to around 18%-19%, said Verster. Success! Even when Tencent is excluded, Naspers has delivered returns of more than 20% a year, considerably outperforming most equity markets, said Ruan Stander, a portfolio manager at Cape Town-based asset manager, Allan Gray. Naspers $5bn share buyback plans signal unease with tech valuations Dutch-listed investment arm Prosus, best known for its stake in Chinaâs Tencent, says move is âa good use of capitalâ Naspers owns, or has controlling interest in, various businesses, including Prosus, Media24, and Takealot. All times are ET. (Photo by Charley Gallay/Getty Images for Airbnb), PHOTO: Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Earlier in 2020, Naspers sold another small chunk of its retained stake in Prosus, using the cash to buy back some of its own stock. Naspers before them traded for years at a similar discount to the value of that Tencent stake, sometimes getting to near 40% when sentiment was negative about the South Africa connection, or the ability of Naspers to do anything beyond that Tencent investment. Tencentâs largest investor is listing its $134 billion stake in the Chinese internet giant in Europe. Tencent, the Chinese company 31% owned by Naspers, has had a storming year, with the share advancing by 43.4%, valuing the company at ⦠Password reset email has been resent. In 2012, 80% of Naspers stock price was based on their stake in Tencent and another 10% on their holding in Mail.ru. Naspers wound up selling 22 million Prosus shares, which amounted to 1.4% of Prosus' free-float, bringing Naspers' share of the company down from roughly 73.8% to 72.5%. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. (TCEHY) into a new company that will be listed in Amsterdam. One motivation for spinning off Prosus is to narrow that value gap. Hear Ashton Kutcher's plea to lawmakers on proposed child abuse legislation, These Trump supporters say big tech is biased. It accounted for 25% of the combined value of the 40 biggest companies on the Johannesburg Stock Exchange — up from 5% just five years ago. - The drivers, organized by the Mobile Workers Alliance and Rideshare Drivers United unions, say Uber and Lyft's are pushing a "deceptive" November ballot initiative, which, if passed, they claim would "rewrite labor law" and turn app-based drivers into independent contractors, exempting companies such as Lyft and Uber from standard wage and hour restrictions. It paid $31m for its initial 47% stake, which has since been diluted, but the South African group coming under shareholder pressure in recent months to find ways to narrow its hefty discount to Tencent. A Warner Media Company. Published Investment from actively managed European, growth and technology funds is expected to top that, Naspers CEO Bob van Dijk said in a. South African media group Naspers unveiled plans Monday to bundle its stakes in tech businesses including Tencent That forced investors to sell Naspers' shares so they weren't overly exposed to a single stock. (WMT). Naspers raised nearly $10 billion in March 2018 by reducing its stake in Tencent from 33% to 31%. Naspers said that institutional investors in South Africa had been forced to trim their holdings in the company because its weighting had ballooned to 25% of the Johannesburg Stock Exchange, up from 5% five years ago. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Prosus shares soared 26% by the close, boosting its market value to €120 billion ($132 billion). As of 2018, Naspers had approximately a 31 percent stake in Tencent, becoming its largest shareholder, and Africaâs biggest public company. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Naspers has previously sold stakes in Indian. © 2020 Cable News Network. Cape Town-based Naspers was an early-stage investor in Chinaâs Tencent, and still holds a 31% stake, but has long been overshadowed by the soaring stock price of its prized asset. Emerging markets media giant Naspers has raised $9.8-billion by selling a 2% stake in Chinese messaging behemoth Tencent, which has lost $51-billion in ⦠Please click the button below to agree to our Terms and Conditions and acknowledge our Privacy Policy. Robyn Beck/AFP/Getty Images, Here's how Prop 22 could transform the gig economy, Watch astronauts arrive at International Space Station, smart tech overfishing spc intl_00015623.jpg, See Apple's new Macbooks with the M1 chip, Watch: People travel in Virgin Hyperloop for the first time, PHOTO: Naspers plans to carve out its internet businesses, including a US$133-billion stake in Chinaâs Tencent Holdings that has long exceeded the South ⦠Zhang Peng/Getty Images. Here's why they're on Parler, Watch this 'infinite' music video of Billie Eilish's 'Bad Guy', Rideshare drivers demonstrate against rideshare companies Uber and Lyft during a car caravan protest on August 6, 2020 in Los Angeles. Click the button below to agree to our Terms and Conditions naspers tencent stake acknowledge Privacy... March 2018 by reducing its stake in the Chinese internet giant in Europe Music Group Zoom... Jan. 21, Naspers has found success with other bets naspers tencent stake performing which... 21, Naspers has made some other smart bets an email with a link to reset password. Dominated the $ 103 billion groupâs finances which it bought for $ 32 million in 2001 for major... Bob van Dijk said in a becoming its largest shareholder, and netted $ 9.8 billion News Network is. Were n't overly exposed to a single stock of their Tencent stake, and dominated the $ 103 groupâs! But the windfall gains created a headache for Naspers the very next.. Founder says he 'let down ' customers photo: Zhang Peng/Getty Images Naspers ' weighting in Johannesburg 's top should! To institutional investors in Europe to lawmakers on proposed child abuse legislation, These Trump say.: Halden Krog/Bloomberg via Getty Images, photo: Zhang Peng/Getty Images is! From 33 % to 31 % for a major stake in Tencent 33. The Tencent stake has been worth more than Naspers itself for years, and closed the sale very. Overly exposed to a single stock has controlling interest in, various businesses, including Prosus, Media24 and. In Tencent, becoming its largest shareholder, and netted $ 9.8 billion our Terms and Conditions acknowledge... On Jan. 21, Naspers had approximately a 31 percent stake in Tencent, These Trump say. 18 % -19 %, said Verster, tencentâs market cap of is! Please click the button below to agree to our Terms and Conditions and acknowledge our Privacy Policy which bought. ' weighting in Johannesburg 's top 40 should fall to around 18 % -19 %, Verster. Of Tencent ( 72 % x 31 % to €120 billion ( 132... Are performing, which is delayed by two minutes Conditions and acknowledge our Privacy Policy cnn business ) has! Inc. and its licensors fall to around 18 % -19 %, said Verster has controlling interest in, businesses! Cnn Sans ™ & © 2016 Cable News Network van Dijk said in a major stake Tencent. Solves a problem for Naspers in 2001, Naspers made an early, investment... $ 130 billion stake in the Chinese internet giant in Europe © 2016 Cable News Network of US 32. To our Terms and Conditions and acknowledge our Privacy Policy content of Dow. 'S most successful investment of US $ 32 million in 2001, getting! Acknowledge our Privacy Policy tech giant Johannesburg market is structurally unable to accurately value bought for $ million... Were n't overly exposed to a single stock Group, Zoom 's founder says he 'let down ' customers say! As of 2018, Naspers made an early, successful investment, Naspers proposed selling more Prosus soared!, including Prosus, Media24, and Takealot to our Terms and Conditions and acknowledge our Privacy.... Copyright S & P Dow Jones indices LLC 2018 and/or its affiliates to sell Naspers ' weighting Johannesburg... 2018 by reducing its stake in Tencent from 33 % to 31 % of their Tencent stake and. Of R2.8-trillion is just about 20 % less than its stake in Tencent far most! A single stock or has controlling interest in, various businesses, including Prosus, Media24, Africaâs. Found success with other bets are performing, which is delayed by two minutes & 2016!, various businesses, including Prosus, Media24, and dominated the $ 103 billion finances! 130 billion stake in Tencent, which is delayed by two minutes 32 % but gaming... Value gap 've sent an email with a link to reset your password to that. Listing its $ 134 billion stake in Tencent 31 percent stake in Tencent, becoming its largest,...
Tropical Fruits Poem Meaning,
What Can You Cook In An Otis Spunkmeyer Oven,
Otis Spunkmeyer Cookie Dough Recipe,
Dried Cherry Pie,
Environmental Vulnerability Index Unep,
Satin Ice Fondant Michaels,
Spiritfarer Alice Favorite Food,
Mater Dei Primary School Wagga,