Market Indicators
- JSE All Share (ALSI) 56,784.61
- Rand/Euro R 15.75
- Rand/Pound R 17.30
- Rand/US Dollar R 14.16
- Rand/Aus Dollar R 9.75
How Naspers is trying to close its valuation discount
Since Naspers acquired a 31% stake in Tencent in 2001, the wealth creation for investors has been very significant. However, there has been a permanent discount between what Naspers is trading at, and the value of its Tencent holding, implying a negative value for the remainder of the Naspers business. As a step to help eliminate this discount, Naspers is planning on seperately listing its Internet based businesses, including Tencent into a new entity called Prosus.
This month’s comment touches on the considerations for investors given the pending restructure.
