prosus tencent discount

As of February 10, the Naspers discount to NAV was 42.6%, at the upper end of its … The company is valued substantially less than its stake in Tencent alone. Both Van Dijk and Sgourdos referred to the problematic discount of the Naspers and Prosus … Prosus’s own value was just 135 billion euros as of Thursday’s close, including other investments in online classified, payment and food delivery businesses. If the Unemployment Insurance Fund isn't used to benefit workers now it might have to fund more jobless workers in future, Rand weakened in early trade as investors sought the safety of US treasuries, The state is abrogating its duty by not enforcing proven safety protocols to prevent Covid-19, South Africans should learn not to take our hard-won democracy for granted, Natural gas burns cleaner than other fossil fuels but it is a fossil fuel nonetheless and the world is drawing away from it, EDITORIAL: Tencent discount needs Naspers to give up control of Prosus, CEO Bob van Dijk might have to wrestle with the valuation conundrum a while longer, He walked away from the deal earlier in 2020 but to be back in the M&A scene a few months later when he put in a $9bn cash offer for. He previously covered Apple and other technology companies for Bloomberg News in San Francisco. By dint of owning 31% of Tencent, worth about $208bn, as well as other investments made since, Prosus is the EU’s fourth-most-valuable firm. Having failed to clinch before valuations went through the roof and still grappling with the long-standing valuation mismatch,  he was left with little choice than to hand the money to shareholders. Tencent Investor Prosus Launches $5 Billion Buyback in Bid to Close Value Gap Naspers, Africa’s most valuable listed company and Prosus parent, has struggled to … It was when the stake started eclipsing Naspers’ market capitalisation that investors started asking uncomfortable questions about Van Dijk’s bonuses and heaped pressure on him to take steps to unlock value. 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At the end of the day, having a smaller discount to NAV would be a good thing for existing shareholders,” Treherne said. Tencent Investor Prosus Launches $5 Billion Buyback in Bid to Close Value Gap Naspers, Africa’s most valuable listed company and Prosus parent, has struggled to … This implies that Naspers has an effective $145bn in value just in Tencent (22% x $660bn). The final sale was made at 67.50 euros, a discount to where shares were trading at that time, but a bit higher than Prosus' current … Prosus is a global consumer internet group and one of the largest technology investors in the world Go to content. In research on Smart Karma on January 22, Artherton points out that direct investment in Tencent since the Prosus listing would have outperformed buying either Naspers or Prosus. But just weeks after the listing, Prosus made a £4.9-billion bid to acquire the British food delivery platform Just Eat. Prosus, he argues, is simply Naspers by another name. WATCH: Will bitcoin continue its upward trend in 2021? The global investment group is the largest consumer internet company in Europe, and among the largest technology investors in the world, operating across a variety of platforms and geographies. All rights reserved. In an attempt to narrow the discount and unlock value for shareholders, Prosus plans to launch a share buy back programme worth R81bn. MARKET WRAP: JSE rises for second day while rand slips amid Covid-19 spike. On Jan. 21, Naspers proposed selling more Prosus shares to institutional investors in Europe, and closed the sale the very next day. By Loni Prinsloo (Bloomberg) – Prosus NV plans to buy back a combined $5 billion of shares in the global e-commerce giant and its South African parent Naspers Ltd., a move designed to boost shareholder value and narrow a discount between the company and its stake in Tencent … Prosus N.V., or Prosus, is the international internet assets division of Naspers. The listing by South African media conglomerate Naspers of assets including part of its Tencent stake via the new Prosus vehicle in Amsterdam in September was heralded as a way to reduce the deep discount to net asset value (NAV) at which Naspers shares trade.. And that might be what shareholders need. Prosus NV plans to buy back a combined $5 billion of shares in itself and its South African parent Naspers Ltd. in a move designed to boost shareholder value and narrow a discount between the e-commerce giant and its stake in Tencent Holdings Ltd. It is hard to see Naspers giving up that control, meaning Van Dijk is likely to wrestle with the valuation shortfall for a while longer. In the days immediately after the Amsterdam listing in September 2019, the ploy proved successful, as Prosus traded closer to the value of its holding in the Chinese firm. Both Van Dijk and Sgourdos referred to the problematic discount of the Naspers and Prosus … The company’s shares tumbled, reopening the valuation gap to the Tencent holding. WATCH: Is there a third way to extricate SA’s economy? Van Dijk isn’t so much cutting the Gordian knot as learning to live with it. One of our largest aggregate portfolio positions is in the related companies of Naspers (a South African holding company), its subsidiary Prosus (a Dutch media conglomerate focused on the internet in emerging markets), and Prosus’s biggest investment, Tencent (a Chinese internet giant). Source: Sharenet Naspers subsidiary and the largest consumer internet company in Europe, Prosus continued to benefit from its holding in the fast-growing Chinese behemoth Tencent, while its own food-delivery businesses were bolstered by the … Therefore, Naspers holds an effective 22% of Tencent (72% x 31%). Prosus is an Amsterdam-listed internet conglomerate. The discount between Prosus and its Tencent stake has expanded this year. Given that Naspers is worth roughly 30% less than the value of its 73% stake in Prosus, Van Dijk’s series of actions, including separately listing Prosus in Europe, have failed to narrow the discount. 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. Naspers owns 72.66% of Prosus, which trades in Amsterdam. In what is a seller’s market, shareholders would have rightly frowned upon an attempt to deploy a R120bn mergers and acquisition budget Prosus flaunted in April. Read more at the SA government's online coronavirus portal or use the 24-hour public hotline: 0800 029 999. Prosus’s own value was just 135 billion euros as of Thursday’s close, including other investments in online classified, payment and food delivery businesses. But equally, why invest in Prosus shares to get exposure to Tencent when you could just invest directly in Tencent itself? We build leading companies that empower people and enrich communities See all our companies. Talk about nice-to-have corporate headaches, Bob van Dijk, the boss of Prosus, a unit of Naspers’ global internet behemoth, will tell you all about it. Prosus share price leapt to R1 650 on Friday, while Naspers shares also gained more than 4 percent to R3 171. Prosus' share price. Tencent's largest investor is listing its $130 billion stake in the Chinese internet giant on Euronext Amsterdam. There was nothing to complain about. In this write-up, I will dive deep into the company’s high-risk high-reward investments, which is one of the major reasons why this discount is occurring. Prosus NV plans to buy back a combined $5 billion of shares in itself and its South African parent Naspers Ltd. in a move designed to boost shareholder value and narrow a discount between the e-commerce giant and its stake in Tencent Holdings Ltd. Prosus share price leapt to R1 650 on Friday, while Naspers shares also gained more than 4 percent to R3 171. Discount. Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. Now, Tencent’s market cap is $660bn in round numbers. In the days immediately after the Amsterdam listing in September 2019, the ploy proved successful, as Prosus traded closer to the value of its holding in the Chinese firm. For most companies, that should be enough to make any of their problems go away but for Prosus it is a tiny, albeit laudable, step in breaking the shackles of being regarded as nothing more than a proxy to Tencent. Prosus shares closed 2.97 percent up at R1 626.93, while Naspers shares closed 3.98 percent higher at R3 152.32. “The idea of narrowing the discount to NAV has spectacularly failed,” he wrote. 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The global investment group is the largest consumer internet company in Europe, and among the largest technology investors in the world, operating across a variety of platforms and geographies. As can be seen from Figure 1 , these discounts to NAV have gone pretty much one way since Prosus listed on 11 September 2019. These categories enjoyed booming demand from consumers ordered to stay at home across the world in the global fight to contain the Covid-19 pandemic, triggering chase from other deep-pocketed companies forced to look for new revenue streams to make up for the sales destroyed by lockdowns. Tencent’s share has jumped almost 57% so far in 2020, driven by investor interest in tech stocks amid the Covid-19 pandemic. The EU’s treaty with the U.K. isn’t a “win,” but it avoids a messy divorce and gives the bloc leverage for the future. He walked away from the deal earlier in 2020 but to be back in the M&A scene a few months later when he put in a $9bn cash offer for eBay’s classifieds business, but the US company chose another bidder. Register (it’s quick and free) or sign in now. Prosus said last month it … The Dutch firm still became Europe’s largest tech company by market capitalization this week after SAP SE shares declined following a profit warning. ... Prosus, unbundled from Naspers last year, also owns a 31 percent stake in Tencent. The company is valued substantially less than its stake in Tencent alone. On Friday, van Dijk seemed to tacitly admit the struggle to … But the Prosus control structure makes it immune to outside influence on strategy and puts off a universe of active investors who want to have a say on its behaviour. Photographer: Deng Qingle/China News Service. The company’s shares tumbled, reopening the valuation gap to the Tencent holding. 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 … South African e-commerce group Naspers is listing its international internet assets, including its 31% stake in China's Tencent <0700.HK>, in Amsterdam on Wednesday under the name of Prosus. That could help narrow the discount. Buy Prosus for exposure to Tencent and high-risk, high-reward investments, but investors should not buy the stock hoping the discount contracts in the coming years. This implies that Naspers has an effective $145bn in value just in Tencent (22% x $660bn). Therefore, Naspers holds an effective 22% of Tencent (72% x 31%). Prosus's discount to net asset value is 40%. As the world went into meltdown, life has been good in the happy little bubble that is Taiwan. This was also a problem for Naspers Ltd., the South African company that spun off Prosus in 2019 in part to try and reduce the discount. Plus they’ll benefit from the reduced share count through greater exposure to the Chinese giant. Van Dijk learned the hard way that shareholders are skittish about how Prosus uses its funds for new dealmaking. Prosus is an Amsterdam-listed internet conglomerate. An announcement in recent days that Prosus, which houses the company's international assets including the investment in Tencent, will shower investors with more than R82bn in cash through the repurchase of its own shares, is the latest attempt to tackle the valuation shortfall, which stood at $59bn. The Amsterdam-based company derives the entirety of its 141 billion-euro ($165 billion) market capitalization from its 31% stake in Tencent Holdings Ltd., the Chinese e-commerce giant. The Dutchman has been preoccupied for much of the past five years since his appointment unlocking value trapped in Naspers’ share price, which continues to trade at a hefty discount to its 31% stake in its Chinese money-spinner, Tencent Holdings. (Bloomberg) -- Prosus NV plans to buy back a combined $5 billion of shares in itself and its South African parent Naspers Ltd. in a move designed to boost shareholder value and narrow a discount between the e-commerce giant and its stake in Tencent Holdings Ltd.The group will aim to pick up $1.37 billion of its own stock and $3.63 billion of Naspers, Amsterdam-based Prosus said in a … In an attempt to narrow the discount and unlock value for shareholders, Prosus plans to launch a share buy back programme worth R81bn. The spin-out from Naspers was intended to reduce the discount at which the company traded to its Tencent stake. Simple. It’s hard to find other investments that can deliver similar returns. With M&A deals largely out of the question and having signed a three-year lock-up to not sell any more of Tencent, Naspers should consider selling down its stake in Prosus to boost its free float in Amsterdam and attract more European institutional investors. He has mapped out a sound plan to build Prosus on three pillars: online payments, food delivery and classifieds. Tencent: the … It's not only billionaires that are the problem. At the end of the day, having a smaller discount to NAV would be a good thing for existing shareholders,” Treherne said. Naspers has long traded at a discount to the value of its Tencent stake alone. Even though Takeaway.com ultimately bought Just Eat, Prosus continues to trade at a discount to the value of its assets. Interim results show Tencent is powering strongly ahead, Prosus and Naspers less so. The Naspers share-price discount to the value of its Internet-heavy portfolio of assets is growing even amid a post-pandemic shift to digital technology.. Shares in South Africa-based Naspers have climbed this year, pulled up more than 30% by the jewel in the crown, the company’s 31% stake in Chinese Internet giant Tencent. We build leading companies that empower people and enrich communities See all our companies. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Prosus owns a 30.9% stake in Asia’s online software and payments giant Tencent worth nearly 200 billion euros at Thursday’s closing price. Other business … Prosus said on Friday it would purchase up to R82 billion in its own and parent Naspers shares, as part of efforts to narrow a discount between its share price and underlying assets. This begs the question: Why would Prosus Chief Executive Officer Bob van Dijk put the company’s money in anything else? Prosus shares in Amsterdam were trading 1.9% higher at 92.72 euros ($110.04) on Monday morning. No matter how fast the Prosus team runs to chase down the discount, the Tencent team will be running considerably faster driving it up.Being the Internet, there might of course be some totally unseen and currently unseeable scenario that could p The focus on Prosus and Naspers has intensified as the companies deal with a valuation gap to Tencent. Tencent is at the very centre of the global metaverse; Prosus is on the edge trying to pick up scraps. eBay’s classifieds business, but the US company chose another bidder. The Naspers/Prosus double-discount structure, coupled with excessive executive remuneration in the view of many market analysts, is a major headache that will be difficult to rectify. For Corrosive Inequality, Look to the Upper Middle Class, My Unusually Normal Life in Taiwan Amid the Global Pandemic. 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%. Tencent stock has soared 57% increase this year, easily making it the best performer in the firm’s portfolio. Prosus owns a 30.9% stake in Asia’s online software and payments giant Tencent worth nearly 200 billion euros at Thursday’s closing price. © 2020 Arena Holdings. Would you like to comment on this article or view other readers' comments? There should be a discount to listed net asset value (NAV) of about 25% for Prosus and about a further 20% for Naspers, says Malan. 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Login to your OfferUp account to instantly connect with local buyers and sellers, shop, and manage your items. Why would the European tech company invest in anything but Tencent? Have a confidential tip for our reporters? The spin-out from Naspers was intended to reduce the discount at which the company traded to its Tencent stake. That was all down to Tencent’s rapid growth, which helped Naspers grind out double-digit profits and deliver an uninterrupted flow of dividends. The Naspers/Prosus double-discount structure, coupled with excessive executive remuneration in the view of many market analysts, is a major headache that will be difficult to rectify. It is the latest attempt to narrow a persistent gap between the company's market value and that of its stake in China's Tencent Holdings Ltd. ... capitalize on the discount. The massive Tencent stake is funding these risky investments. EDITORIAL: Tencent discount needs Naspers to give up control of Prosus CEO Bob van Dijk might have to wrestle with the valuation conundrum a while longer 10 November 2020 - 05:08 It is the latest attempt to narrow a persistent gap between the company's market value and that of its stake in China's Tencent Holdings Ltd. ... capitalize on the discount. Currently, we estimate the Naspers discount to NAV to be c. 45.2% and the Prosus discount to NAV c. 30.2%. In the days immediately after the Amsterdam listing in … The discount between Prosus and its Tencent stake has expanded this year. And Naspers (NPSNY) still controls Prosus, by the way, with a 74% stake, so Naspers shares represent a discount on top of a discount — 74% of Prosus should be worth $99 billion, yet Naspers in South Africa currently has a market cap of $73 billion, so that’s a 26% discount on top of a 20% discount. Van Dijk took over a consumer internet powerhouse, a top-10 global technology investor alongside Softbank, Facebook and Google. Navigate Preview company Navigate Next company. An investor needs to trust that Prosus’ high-risk, high-reward investments and the Tencent … It … Naspers owns 900,000 unlisted A-class shares, which carry 1,000 times more votes than ordinary shares, that kick in as soon as its Prosus stake falls to 50%. Even before the pandemic hastened the trend towards online shopping, food delivery and other technology platforms, and forced companies across the world to reckon with the new reality, Prosus investors were reluctant to give Van Dijk the thumbs up when he tried to buy a large UK food delivery business, Just Eat, for $8bn. But he said that even if Prosus’s other assets were valued at zero, you would still be buying Tencent at a discount of about 20pc. But just weeks after the listing, Prosus made a 4.9 billion-pound ($6.4 billion) bid to acquire the British food delivery platform Just Eat Plc. 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.

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