Naspers/Prosus desperation to unlock value gathers steam
Europe’s largest internet company, has announced a share exchange offer to Naspers shareholders. This entails SA-domiciled Naspers shareholders being invited to tender “existing Naspers N Ordinary shares for newly issued Prosus Ordinary shares N.” This is in an effort to narrow the value gap between the Dutch company and a $229bn stake in Tencent. Once the transaction is made complete, the global internet group will hold a 49.5% interest in Naspers. According to Bloomberg, the Cape Town-based multinational has been trying to achieve valuation greater than “the sum of its parts and stop being seen as merely a proxy for investing in WeChat-creator Tencent.” Basil Sgourdos, CFO of both companies, said “It preserves Naspers as the largest South Africa-domiciled company on the JSE and its control of Prosus. The transaction creates immediate value for Naspers shareholders when they swap their higher discount to NAV Naspe