|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's range||81.77 - 85.99|
|52-week range||73.08 - 110.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||38.73|
|Earnings date||21 Jun 2021|
|Forward dividend & yield||0.11 (0.13%)|
|Ex-dividend date||22 Oct 2020|
|1y target est||N/A|
(Bloomberg) -- Prosus NV is redoubling its effort to narrow the valuation gap between itself and a more than $200 billion-dollar stake in Tencent Holdings Ltd, unveiling a complex share swap and a further stock buyback.The Dutch-listed unit’s parent Naspers Ltd. dominates the Johannesburg stock market, limiting the amount of its shares investors can own due to local fund ownership rules. That means its market value has long been less than its holding in Tencent.Prosus will issue more stock, giving it a 49.5% stake in Naspers and increasing its free float to over $100 billion, the parent company said in a statement on Wednesday. By asking investors to swap Naspers stock with new Prosus shares, the deal will aim to attract a wider range of investors to its European listing and narrow the discount.Prosus will also launch a further $5 billion share buyback once the share-swap deal is complete, Chief Financial Officer Basil Sgourdos said in an interview with Bloomberg. Prosus launched a previous $5 billion repurchase of its own stock and that of its South African parent last year.Financial Flexibility“The share offer we have announced today will extend Prosus’s standing as Europe’s largest internet company,” Chief Executive Officer Bob van Dijk said in a statement. The aim is to create “a stable construct that maintains the group’s operational, strategic and financial flexibility.”Naspers shares rose as much as 5.5% in Johannesburg, while Prosus stock increased 3.6% in Amsterdam.“Both shareholder parties should benefit from the transaction,” said Renier de Bruyn, an analyst at Sanlam Private Wealth. “Because Prosus trades at a lower discount to the Tencent stake than Naspers, the total discount in the system should come down,” he said.Naspers has tried for years to achieve a valuation greater than the sum of its parts and stop being seen as merely a proxy for investing in WeChat-creator Tencent. Cape Town-based Naspers was an early-stage investor in Tencent and has gradually been eclipsed by the Chinese business’s soaring valuation.Prosus was a major part of the plan to solve the valuation gap, created in 2019 to diversify away from South Africa and give investors more direct exposure to its broad portfolio of tech businesses. Naspers makes up almost a fifth of the country’s main stock exchange, even after spinning off most of its assets into Prosus.The persistent discount means the market assigns a negative value to Prosus’s myriad other businesses, which span from Indian online travel agents to Brazilian food delivery and U.S. education sites.“Investors and fund managers have a cap on how much they can own in Naspers,” said Sgourdos. “So every time the stock goes up they have to sell -- and that puts pressure on us -- and it makes the discount wider.”Tencent SaleIn April, Prosus sold a $14.7 billion stake in Tencent, in the world’s second-biggest block trade on record, adding to a deals war chest after missing out out on two major acquisitions. Last year Takeaway.com NV trumped Prosus’s bid for Just Eat Plc, and EBay Inc.’s classifieds business was scooped up by Prosus’s smaller Norwegian rival, Adevinta ASA, for $9.2 billion.“The plan is to grow the core business through M&A as well -- there is a lot in the pipeline,” said Sgourdos. “We have lots of financial flexibility to fund M&A, and also the buybacks. If there is more capital needed we have the capacity to raise that.”The share-swap transaction is expected to be implemented during the third quarter of this year.What Bloomberg Intelligence Says:Prosus and Naspers’ plan to increase cross shareholdings may reduce the headwind of investors’ single-stock limits on the latter in particular, but increases the complexity and doesn’t address the elephant in the room: the discount to Tencent. Prosus trades at less than the value of its Tencent stake -- let alone its other investments -- which continues to imply that the market thinks that Prosus isn’t spending its Tencent gains effectively.--John Davis, BI senior telecom, media and internet analystClick here to read the research.(Updates with analyst quote in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
AMSTERDAM (Reuters) -Amsterdam-based technology investor Prosus NV announced plans on Wednesday to acquire up to 45.4% of shares in its parent Naspers of South Africa by issuing new Prosus shares in a deal aimed at moving part of the value of their massive stake in Tencent to Europe from Africa. Naspers, which has a controlling stake in Prosus and would retain control, hopes the deal will improve valuations for both companies. "The share offer we have announced today will extend Prosus’s standing as Europe’s largest internet company," Bob van Dijk, CEO of both companies, said in a statement.
AMSTERDAM (Reuters) -Dutch-listed technology investor Prosus NV plans to raise its stake in South African parent Naspers to nearly 50% in a share swap deal that will move part of their huge holding in China's Tencent to Amsterdam from Johannesburg. Naspers is Africa's biggest listed company because of its Tencent holding but its shares trade at a steep discount to the value of its stake, which led it to list Prosus in 2019. Under the deal announced on Wednesday, Prosus will issue new shares to buy up to 45.4% of Naspers shares, effectively moving part of Naspers from the Johannesburg bourse to Euronext in Amsterdam, another fillip for the Dutch market which has won ground from London following Brexit.