At the end of the day, having a smaller discount to NAV would be a good thing for existing shareholders,” Treherne said. Figure 2: Naspers’ historic discount to NAV since Prosus listing announcement: Source: Bloomberg, Anchor.
With Nigeria's debt market becoming even more unattractive to foreign investors, Nigerian investors’ only viable trading option will be the country’s now bullish stock market. The discussions around holding companies or conglomerates often focuses on the market discount to the Net Asset Value (NAV) of the underlying businesses, often referred to as the conglomerate discount. (Index Futures/Index Options/JGB Future) October 2020 Contracts Nikkei 225 23,724.23 yen Nikkei 225 Weekly Options 1st week... Market News Oct. 22, 2020 OSEReplacement of Component Issues for the Nikkei Stock Average(Nikkei 225) Tweet Nikkei Inc. announced the following partial change of component... 1 of 5 A man stands near an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, Oct. 16, 2020. Management has ample options at hand to address the discount. DURBAN - PROSUS shares rose more than 5 percent on the JSE on Friday after the Dutch technology giant said it intended to buy back up to $5 billion (about R81bn) in its own and Naspers’ shares, in an effort to reduce the discount between the companies’ share prices and their underlying assets. Investors with direct access to Tencent shares who are convinced by the investment case should “buy Tencent directly”, he says. “The underlying issues surrounding the discount given by the market to Naspers were not eliminated or reduced by the listing of Prosus,” according to Atherton. If concerns about this deal were behind the widening in the discount over the last few months, one would think that removal of this risk might be grounds for the discount to narrow. Short-term progress in increasing insurance penetration in Africa will be a victim of pressure from the “Big Six” global reinsurers to increase prices, says Ryan Phillips, chief operating office at Afro-Asian Insurance Services. “By extension, the management are saying that they think the market is undervaluing the internet assets that Naspers owns. Currently, we estimate the Naspers discount to NAV to be c. 45.2% and the Prosus discount to NAV c. 30.2%.
The Bluecode payments solution is about to go live in Nigeria with two partner banks, Murray Gardiner, managing director of Bluecode Africa, tells The Africa Report. This will create a bit of a circular holding structure,” Treherne said. The group is now in a position to both invest in its asset portfolio, and to purchase its own stock when it makes sense from a returns perspective. Get your free PDF: The 100 most influential Africans, 2019 edition.
“On balance, the proposed buyback of Naspers and Prosus shares is largely positive. Artherton points to the loss of control over proceeds from Tencent which investing in Nasper entails. Investors “do not have a great desire to get involved with the Naspers venture capital fund”, Mark Artherton, CEO and head of research at Inteqres in London, told The Africa Report. Naspers has announced that its subsidiary, Prosus intends to acquire up to $5 billion in total of Naspers and Prosus shares. At the end of the day, having a smaller discount to NAV would be a good thing for existing shareholders,” Treherne said. The massive Tencent stake is funding these risky investments. “Management and the Naspers and Prosus boards are committed to delivering long-term returns for shareholders.
It has built a portfolio of e-commerce assets with significant cash-flow-generating capabilities. If you are interested in www.streetinsider.com content, APIs are available. The discount has widened appreciably during the recent rally in the Tencent share price.
Investors “do not have a great desire to get involved with the Naspers venture capital fund”, Mark Artherton, CEO and head of research at Inteqres in London, told The Africa Report. Complete the form for your free download of The Africa Report’s 2019 list of the 100 most influential Africans.
The Prosus discount to NAV was 33.3%. Naspers’s Internet division Prosus today announced it is planning to acquire up to $5 billion in total of Naspers and Prosus shares. A theory that made a lot of sense to us was that the discount widened during periods when Tencent was appreciating steadily, because the resultant rise in Naspers’ share price caused SA institutional investors to exceed their single-stock exposure limits, thus making them forced sellers of Naspers.
Yet five months later, the discount persists. © 2020 Independent Online and affiliated companies. Prosus' NAV discount has widened considerably since its spinoff from Naspers. Our sense was that Prosus shareholders were not particularly positive on this deal and fearful that Prosus was overpaying for Just Eat. He said they believed this was a step in the right direction, although the board would still need to take a lot more steps to really unwind the discount sustainably. Opinion on the ultimate profitability of the food delivery vertical is very divided (Prosus management’s extreme bullishness notwithstanding!). An investment in Naspers removes that control,” he says. As can be seen from Figure 1, these discounts to NAV have gone pretty much one way since Prosus listed on 11 September 2019. “Reducing the discount to NAV has been something that management has been working on for a few years now, and is the reason for the existence of Prosus in the first place. All rights reserved, Please visit the official Government information portal for Coronavirus by clicking HERE. (Index Futures/Index Options/JGB Future) October 2020 Contracts Nikkei 225 23,724.23 yen Nikkei 225 Weekly Options 1st week, Oct. 27, 2020OSE Final Settlement Prices Updated (Contract month: October 2020): Gold, Platinum, Oct. 23, 2020OSE Special Quotations Updated (Contract month: 4th week October 2020): Nikkei 225, Oct. 22, 2020OSE Replacement of Component Issues for the Nikkei Stock Average(Nikkei 225), Market News Oct. 22, 2020 OSEReplacement of Component Issues for the Nikkei Stock Average(Nikkei 225) Tweet Nikkei Inc. announced the following partial change of component, Oct. 16, 2020OSE Special Quotations Updated (Contract month: 3rd week October 2020): Nikkei 225, Oct. 21, 2020OSE Special Quotations Updated (Contract month: October 2020): TAIEX, Global shares mixed amid virus spike, US aid concerns, 1 of 5 A man stands near an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, Oct. 16, 2020. As you were browsing www.streetinsider.com something about your browser made us think you were a bot. Michael Treherne, a portfolio manager at Vestact, said the rationale for Prosus was that they were buying Naspers shares at a deep discount to its NAV. Underlying assets have significant growth potential.
“The idea of narrowing the discount to NAV has spectacularly failed,” he wrote.
The announcement follows earlier actions such as the unbundling of MultiChoice Group and the listing of Prosus on Euronext Amsterdam last year. Prosus, as is well known, owns significant listed stakes in Tencent, Mail.ru, Delivery Hero, and Ctrip.
Naspers's Prosus eyes $5bn share buyback plan. Following a c. 24% rally in the Tencent share price (Naspers owns a 31% stake of the Hong Kong-listed tech Group, which accounts for >80% of Naspers’ net asset value [NAV)]) from c. 4 December 2019 to Monday’s (13 January) close, we highlight what has happened to the Naspers and Prosus discount to NAV below.
Bob van Dijk, group CEO, Prosus and Naspers. http://www.streetinsider.com/signup_content.php. Prosus's discount to net asset value is 40%.
Get your free PDF by completing the following form. The impact of COVID-19 on consumer choices is starting to take shape, and some South African retailers are taking drastic steps to retain market share. COPYRIGHT (C) 2020 ANCHOR GROUP LIMITED | Reg #2009/005413/06 | Vat #4380267833 Passive investment funds, low-cost vehicles which seek to replicate the performance of an index by buying all the members rather than making active choices between stocks, may be the best hope for a narrower discount at Prosus. In the absence of a big correction in the Tencent share price though, the commitments that Prosus management have made to take further steps to address this discount in the medium term suggest that we are at levels from which there should be good upside if management does indeed follow through. An authorised Financial Services Provider FSP # 39834, For all official information and updates regarding COVID-19, visit the, Bringing the theory home: Our behavioural biases in a South African context. The listing by South African media conglomerate Naspers of assets including part of its Tencent stake via the new Prosus vehicle in Amsterdam in September was heralded as a way to reduce the deep discount to net asset value (NAV) at which Naspers shares trade. Prosus CEO Bob van Dijk said the company had looked at other options, including spending money on new large acquisitions but found buying back its own shares a better deal, pointing to the discount. As can be seen from Figure 1 , these discounts to NAV have gone pretty much one way since Prosus listed on 11 September 2019.
Posted on Wednesday, 19 February 2020 11:45. All rights reserved. DURBAN - PROSUS shares rose more than 5 percent on the JSE on Friday after the Dutch technology giant said it intended to buy back up to $5 billion (about R81bn) in its own and Naspers’ shares, in an effort to reduce the discount between the companies’ share prices and their underlying assets. The decision around index inclusion is usually in September, but can happen earlier if one an existing Euro Stoxx 50 member disappears through corporate action.
Basil Sgourdos, CFO of Prosus and Naspers, comments: “Over the years, our group has achieved improved financial flexibility. Prosus shares closed 2.97 percent up at R1 626.93, while Naspers shares closed 3.98 percent higher at R3 152.32.
It is expected that the Naspers shares acquired will be held in treasury and will thus be excluded from Naspers per share financial metrics. It’s hard to apply much from a fundamental perspective to predict where this discount should be and hence where it goes from here.
Prosus said it intended to buy back up to $1.37bn of its own shares and up to $3.63bn of Naspers shares after the release of its half-year results, which were expected on November 23. The purchase of Naspers and Prosus shares also represents a meaningful investment in the group’s strong Internet portfolio, says Prosus, adding that it is regarded as a good use of capital, given full market valuations evident in consumer Internet mergers and acquisitions (M&A) and the group’s sizeable consolidated discount to net-asset-value (NAV). Prosus and Naspers chief executive Bob van Dijk said they had found several large merger and acquisitions opportunities in their sector to be fully priced and had stayed disciplined. Nigeria: Stock market may be investors’ only viable option, Fintech Bluecode aims to light up Nigeria’s informal economy, African insurance penetration threatened by rising reinsurance rates, South Africa: The Covid plan for Woolworths, Clicks and Pick n Pay.
“A direct investment in Tencent gives you a small yield and the ability to redeploy capital elsewhere.
Prosus intends not to vote the Naspers shares acquired. SA investors being forced sellers of Naspers might explain why the discount has widened recently for Naspers, but what we find interesting is that Prosus has seen a similar widening in its discount and does not have the same problem. In total, up to $5 billion in shares in Naspers and Prosus will be purchased on the open market on a pro-rata (72.5%/27.5%) basis in line with the economic stakes of both companies in the Prosus/Naspers asset base.
“Utilising cash to own more of our current portfolio through a purchase of our own shares – when the discount to net asset value (NAV) is sizeable – is a sensible use of capital,” Van Dijk said.
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