Mark Artherton, CFA

Inteqres

Equity Bottom-Up

The restructure, spinoff, and listing of Prosus was heavily featured on Smartkarma prior to the September 11th event.  But where do things stand now? We argue that whilst the technical detail of the transaction was handled really well by Smartkarma insight providers, a certain amount of the wood was missed for the trees.  The underlying issues surrounding the discount given by the market to Naspers were not eliminated or reduced by the listing of Prosus.  These issues remain and may be growing.

The restructure, spinoff, and listing of Prosus was heavily featured on Smartkarma prior to the September 11th event.  But where do things stand now? We argue that whilst the technical detail of the transaction was handled really well by Smartkarma insight providers, a certain amount of the wood was missed for the trees.  The underlying issues surrounding the discount given by the market to Naspers were not eliminated or reduced by the listing of Prosus.  These issues remain and may be growing.

Naspers/Tencent/Prosus - Why Has the Discount Got Even Bigger!

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<a href="https://www.smartkarma.com/entities/21085" target="_blank" data-smartkarma-citation="entities:21085:1">Naspers (NPN SJ)</a> recently announced another attempt to reduce the holdco discount which has remained stubbornly high despite previous attempts by management to reduce it. Since the announcement there has been movement, so perhaps this time it really is different!So what is being done? Naspers will spin off its international internet assets, which account for &gt;99% of its value, into a newco. They will then list 25% of newco on the Euronext in Amsterdam by issuing these shares to Naspers' shareholders. The intention is to create a vehicle which can attract increased foreign and tech investors without the complication of a South African listing. The company believes this has been a key factor behind the wide holdco discount. The move also reduces Naspers weighting in South African indices which is another contributing factor.<a href="https://www.smartkarma.com/profiles/1918" target="_blank" data-smartkarma-citation="accounts:1918">Alastair Jones</a> sees the announcement as a positive, although there are still issues with the main listing being in South Africa. He still believes a buyback would be the most effective way to reduce the discount, but Naspers is also keen to keep investing.

Naspers (NPN SJ) recently announced another attempt to reduce the holdco discount which has remained stubbornly high despite previous attempts by management to reduce it. Since the announcement there has been movement, so perhaps this time it really is different!So what is being done? Naspers will spin off its international internet assets, which account for &gt;99% of its value, into a newco. They will then list 25% of newco on the Euronext in Amsterdam by issuing these shares to Naspers' shareholders. The intention is to create a vehicle which can attract increased foreign and tech investors without the complication of a South African listing. The company believes this has been a key factor behind the wide holdco discount. The move also reduces Naspers weighting in South African indices which is another contributing factor.Alastair Jones sees the announcement as a positive, although there are still issues with the main listing being in South Africa. He still believes a buyback would be the most effective way to reduce the discount, but Naspers is also keen to keep investing. 

Naspers: Addressing the Discount (Again). New Moves to Realize Value Are Having an Impact

South Africa

MultiChoice Group operates as an entertainment company. The Company creates and secures the rights to content from all over the world. MultiChoice Group delivers content through direct to home, digital terrestrial television, and online video-entertainment services.

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MultiChoice Group (MCG SJ)

Naspers/Tencent/Prosus - Why Has the Discount Got Even Bigger!

The restructure, spinoff, and listing of Prosus was heavily featured on Smartkarma prior to the September 11th event. But where do things stand...

Mark Artherton, CFA

Naspers: Addressing the Discount (Again). New Moves to Realize Value Are Having an Impact

Naspers (NPN SJ) recently announced another attempt to reduce the holdco discount which has remained stubbornly high despite previous attempts by...

New Street Research

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