Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

On 29 May, <a href="https://www.smartkarma.com/entities/21085" target="_blank" data-smartkarma-citation="entities:21085:1">Naspers Ltd (NPN SJ)</a> and New Global Tech Group (ticker unknown) but hereafter called "NewCo" released a group of documents giving the details of the NewCo spinoff, listing, EGM, voting for both materialised and materialised shareholders of Naspers and Naspers ADS, and outlining all relevant matters related to the capitalisation issues, designed to get Naspers shareholders from where they are now to where they will be after the whole transaction is completed. It provides a basic guide as to what is in each asset. It is a slog, but it is worthwhile if you own a lot. This insight provides a quick summary of the expected mechanism - in plain English - plus an expectation of what happens in index land (there is some weirdness which is definitely worth understanding), voting rights, and the impact on different investor types. There is an election for investors to take either Naspers M, which turns into NewCo N, or to take Naspers N (i.e. give up shares in NewCo to get more of existing Naspers) and it is.... complicated.    HINT: Don't expect everybody to take NewCo N instead of Naspers N. Part II of this will discuss Thinking on the Appropriate Discount.This too is a complex subject. There is a method now. And there is likely to be a method later. And the relationship between one and the other has a delta to the market.We hope this is a guide you can come back to when figuring out how to deal with your positioning given the discount to NAV and your assumptions about flows and post-event discounts of NewCo vs Tencent+Internet/e-commerce and Naspers vs NewCo.As of now, the Naspers discount to NAV is trading its narrowest level in 24 months.

On 29 May, Naspers Ltd (NPN SJ) and New Global Tech Group (ticker unknown) but hereafter called "NewCo" released a group of documents giving the details of the NewCo spinoff, listing, EGM, voting for both materialised and materialised shareholders of Naspers and Naspers ADS, and outlining all relevant matters related to the capitalisation issues, designed to get Naspers shareholders from where they are now to where they will be after the whole transaction is completed. It provides a basic guide as to what is in each asset. It is a slog, but it is worthwhile if you own a lot. This insight provides a quick summary of the expected mechanism - in plain English - plus an expectation of what happens in index land (there is some weirdness which is definitely worth understanding), voting rights, and the impact on different investor types. There is an election for investors to take either Naspers M, which turns into NewCo N, or to take Naspers N (i.e. give up shares in NewCo to get more of existing Naspers) and it is.... complicated.    HINT: Don't expect everybody to take NewCo N instead of Naspers N. Part II of this will discuss Thinking on the Appropriate Discount.This too is a complex subject. There is a method now. And there is likely to be a method later. And the relationship between one and the other has a delta to the market.We hope this is a guide you can come back to when figuring out how to deal with your positioning given the discount to NAV and your assumptions about flows and post-event discounts of NewCo vs Tencent+Internet/e-commerce and Naspers vs NewCo.As of now, the Naspers discount to NAV is trading its narrowest level in 24 months.  

Naspers ➔ NewCo Spinoff I: Structure, Ownership, Index Effects

China

Prosus N.V. provides internet based services. The Company focuses on investments in internet, digital media, e-commerce retailing, and consumer internet companies. Prosus serves customers worldwide.

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Prosus NV (PRX NA)

Naspers ➔ NewCo Spinoff I: Structure, Ownership, Index Effects

On 29 May, Naspers Ltd (NPN SJ) and New Global Tech Group (ticker unknown) but hereafter called "NewCo" released a group of documents giving the...

Travis Lundy

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