Naspers to spinoff Prosus
- Posted on December 04, 2019
- Stock Spinoff
- By admin admin
Naspers (JSE: NPN and LSE: NPSN, South African consumer
internet conglomerate, has already spun-off its sizeable investment Prosus
(AEX: PRX and JSE: PRX). Prosus is a global consumer internet group and one of
the largest technology investors in the world, which focuses on long-term value
creation by building leading technology companies that improve people's daily
lives in high-growth markets.
The spinoff in Amsterdam marked the end of an era for Naspers
as it looked to move beyond the legacy of former Chief Executive Officer, Koos
Bekker's prescient investment of just $34 million in Tencent when it was a
startup 2001, one of the lucrative best in corporate history. The stake in
Tencent, the world's biggest videogame company and home to China's hugely
popular WeChat social media platform, is worth about $130 billion and has
buttressed Naspers' rapid growth towards becoming Africa's most Valuable listed
company.
Following the spinoff in September 2019, Prosus soared at
opening and ranked among the top 10 consumer internet companies globally. While
many investors and analysts were worried about not creating a global champion,
Prosus changed Europe's fortune overnight on its first day of trading. The
assets of Prosus is valued in excess of %100 billion, making it the largest in
Europe by asset value.
The Chief Executive Officer of Prosus and Naspers, Bob Van
Dijk, said:
The listing of Prosus
is an exciting step forward for the group, giving global technology investors
direct access to our unique and attractive portfolio of international consumer
internet businesses. The listing on Euronext Amsterdam provides a strong
foundation for our future growth ambitions. We will continue to seek
opportunities to partner with exceptional entrepreneurs who are using
technology to address big societal needs, and to create value for our
shareholders.
Naspers holds the majority of shares with at least 73% stake
in Prosus alongside its other South African businesses, Takealot and Media24. Prosus
being the second largest tech company in Africa, it does not offer digital
services under its brand like Twitter, but invests in a portfolio of global
internet firms.
Often, when a company spins off a minority asset, investors
may not intend to own the other asset and may sell the spun-off stock, not
minding the value of the stock. The reverse happened in the case of Prosus,
where it appeared that investors had owned Naspers in order to get prosus.
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