Naspers ,PRX | Growth, incentives and discounts
Naspers placed 1.4% of Prosus, raising c.USD1.5bn which will be used for Naspers' first ever N-share buyback. The buyback announcement further signals management's intent on actively managing the discount. The listing of Prosus, unbundling MultiChoice, selling 2% of Tencent and exiting most of Naspers' longtail etail portfolio are previous actions taken as part of the strategic intent to the reduce the c.44% discount that Naspers trades at to its underlying assets.In our view, a key part of the disconnect is that NPN is investing for growth, which in the short-term detracts from the Tencent specific returns. NPN has raised c.USD12bn through disposals (Flipkart: USD2.2bn, Tencent: USD9.8bn) which has been earmarked for investments in the rump where earnings contributions remain elusive. In addition, Naspers received c.USD709m of Tencent dividends over the past two years, of which USD450m was paid out to shareholders.
We believe a buyback will alleviate the Naspers to Prosus discount (18.8% currently). However, the buyback will not significantly address the Prosus discount to its Tencent stake.
Naspers and its operating subsidiaries, joint ventures and associated companies are engaged in the operation of pay television and the provision of related technologies, the operation of internet and instant messaging subscriber platforms, e-commerce platforms and the publishing, distribution and printing of magazines, newspapers and books. These activities are conducted primarily in South Africa, sub-Saharan Africa, China, Central and Eastern Europe, Russia, India and Brazil. Co. is organized into three business segments: Electronic media; Print media; and Corporate services.
Prosus NV Formerly known as Myriad International Holdings NV. Prosus NV, formerly Myriad International Holdings NV, is a Netherland-based global consumer Internet group. The Company is organized into six business areas: Classifieds, Payments & Fintech, Food delivery, Etail, Ventures and Travel. It also holds investments in listed Social & Internet assets. The Classifieds business area manages mobile and digital marketplaces. The Payments & Fintech business area includes PayU, a Payment Service Platform. The Food delivery business area manages food delivery companies. The Travel business area operates a travel online platform. The Etail business area includes business to consumer e-commerce companies. The Venture business area looks for and invests in early stage companies.
Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.
Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.
Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.