prosus discount to nav

As can be seen from Figure 1 , these discounts to NAV have gone pretty much one way since Prosus listed on 11 September 2019. Prosus share price leapt to R1 650 on Friday, while Naspers shares also gained more than 4 percent to R3 171.

“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. All rights reserved. After completing the CAPTCHA below, you will immediately regain access to www.streetinsider.com.

© 2020 Independent Online and affiliated companies. The Prosus discount to NAV was 33.3%. Investors with direct access to Tencent shares who are convinced by the investment case should “buy Tencent directly”, he says. Naspers's Prosus eyes $5bn share buyback plan. (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. Figure 2: Naspers’ historic discount to NAV since Prosus listing announcement: Source: Bloomberg, Anchor. 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. Final Settlement Prices Special Quotations, etc. 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. Prosus' NAV discount has widened considerably since its spinoff from Naspers. “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. 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. What type of discount is the market implying for Prosus and Naspers post the Prosus listing? The million-dollar question currently is at what discount to NAV the two listed vehicles (Naspers and Prosus) will trade at in the future. 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. The announcement follows earlier actions such as the unbundling of MultiChoice Group and the listing of Prosus on Euronext Amsterdam last year. “A significant share price move at Tencent could easily offset the benefits of this $5bn proposed share buyback, so it is important to consider all the moving parts when investing based on a corporate event such as this one,” Takaendesa said. Prosus intends not to vote the Naspers shares acquired. 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.

Prosus is a global consumer internet group and one of the largest technology investors in the world Go to content. Copyright © 1996 - 2020 ITWeb Limited. This is the second share buyback the combined Naspers group has implemented in 2020, but the structure is different this time, as Naspers is not directly selling more Prosus shares,” Takaendesa said. “Utilising cash to own more of our current portfolio through a purchase of our own shares – when the discount to NAV is sizeable – is a sensible use of capital.”. Prosus said it intended to buy back up to $1.37bn of its own shares and up to $3.63bn of … By continuing on The Africa Report, you agree to the use of cookies under the terms of our privacy policy.You can change your preferences at any time. Shareholders opted instead to back the board’s recommendation and go with the offer from Takeaway.com. The Africa Report uses cookies to provide you with a quality user experience, measure audience, and provide you with personalized advertising. These purchases will be funded from cash resources. To date, however, that does indeed seem to be the plan. Management has ample options at hand to address the discount. Naspers’s Internet division Prosus today announced it is planning to acquire up to $5 billion in total of Naspers and Prosus shares. Prosus said it intended to buy back up to $1.37bn of its own shares and up to $3.63bn of … Naspers has announced that its subsidiary, Prosus intends to acquire up to $5 billion in total of Naspers and Prosus shares.

Underlying assets have significant growth potential. 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. “By extension, the management are saying that they think the market is undervaluing the internet assets that Naspers owns. “On balance, the proposed buyback of Naspers and Prosus shares is largely positive. 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. Peter Takaendesa, the head of equities at Mergence Investment Managers, said the wider discounts at which Naspers (more than 50 percent) and Prosus were trading compared with the market value of their underlying investments and high valuations of assets in markets they had been looking for acquisitions made share buybacks more attractive than pursuing acquisitive growth. Prosus, unbundled from Naspers last year, also owns a 31 percent stake in Tencent. The Prosus ordinary shares N proposed to be issued in connection with the Prosus distribution have not been and will not be registered under the U.S. Securities Act of 1933, as amended.

We build leading companies that empower people and enrich communities See all our companies. 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. If you are interested in www.streetinsider.com content, APIs are available.

Prosus's discount to net asset value is 40%. 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). Bob van Dijk, group CEO, Prosus and Naspers. 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. Prosus' NAV discount has widened considerably since its spinoff from Naspers. In research on Smart Karma on January 22, Artherton points out that direct investment in Tencent since the Prosus listing would have outperformed buying either Naspers or Prosus. 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. http://www.streetinsider.com/signup_content.php. It has built a portfolio of e-commerce assets with significant cash-flow-generating capabilities. Asian shares were mixed on Friday, Nexon Added to the Nikkei Stock Average – the Nikkei 225 –, Nexon Added to the Nikkei Stock Average – the Nikkei 225–, Nov. 02, 2020TOCOM Final Settlement Prices Updated (Contract month: October 2020): Crude Oil, Electricity, Prosus hopes to close discount to NAV with $5bn share buyback, Prosus - a global consumer internet group, Investing and Operating in Growth Markets with Bob van Dijk (Prosus and Naspers), WATCH: Stock picks — Global Market Recovery and Prosus, Naspers CEO Says Prosus Dutch Listing to Facilitate Growth Wave. This will create a bit of a circular holding structure,” Treherne said. 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. JavaScript needs to be enabled to complete CAPTCHA. Get your free PDF: The 100 most influential Africans, 2019 edition. The combined listed value of these businesses is $169bln,… “Both Naspers and Prosus deserve a discount for being holding companies, not controlling their major assets, use of proceeds risk and a venture capital discount,” Artherton argues. In a statement, the European-listed Prosus says this is a further step to crystalise value for shareholders. 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. Prosus said the share buyback was a further step to crystalise value for shareholders, and it followed earlier actions such as the unbundling of. “Management and the Naspers and Prosus boards are committed to delivering long-term returns for shareholders. We still believe the optionality lies in Naspers rather than in Prosus. 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.

Basil Sgourdos, CFO of Prosus and Naspers, comments: “Over the years, our group has achieved improved financial flexibility. It’s hard to apply much from a fundamental perspective to predict where this discount should be and hence where it goes from here. MultiChoice Group and the listing of Prosus on Euronext Amsterdam last year. By downloading this PDF you agree to subscribe to The Africa Report Daily newsletter. Discount to net asset value is a pricing situation that occurs when an ETF's or mutual fund’s market trading price is lower than its daily net asset value (NAV). Prosus, he argues, is simply Naspers by another name. 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. 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. 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. COPYRIGHT (C) 2020 ANCHOR GROUP LIMITED    |    Reg #2009/005413/06    |    Vat #4380267833 The board of directors of Prosus (the Prosus Board) is of the view that the Proposed Transaction is a timely investment in the group’s strong internet portfolio, which is a sensible use of capital given full market valuations in consumer internet M&A, and the sizeable discount to the group’s NAV.

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