Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Charley Gallay/Getty Images for Airbnb, Watch: Airbnb founder stunned on live TV by stock price, PHOTO: While Tencent is by far the company's most successful investment, Naspers has found success with other bets. By Loni Prinsloo (Bloomberg) – Naspers Ltd. plans to carve out its internet businesses, including a $133bn stake in China’s Tencent Holdings Ltd. that has long exceeded the South African technology investor’s own market value. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. The firm owns 2.2% of Naspers. One motivation for spinning off Prosus is to narrow that value gap. The simplest way to prove the point is to look at the value of Naspers’ indirect stake in Chinese consumer media giant Tencent. That forced investors to sell Naspers' shares so they weren't overly exposed to a single stock. 7:59 AM EDT, Mon March 25, 2019, PHOTO: It accounted for 25% of the combined value of the 40 biggest companies on the Johannesburg Stock Exchange — up from 5% just five years ago. Listing the assets on the Euronext exchange in Amsterdam solves a problem for Naspers. Related Article  To complete your CNN profile and ensure you are able to receive important account information, please verify your email address. The stock sale marks the first time Naspers is selling any of its stake in Tencent, which it has held since 2001 when it spent $34 million on the shares, reported The Wall Street Journal. Naspers announces its intention to sell up to 190 million Tencent Holdings Limited (Tencent) shares, equal to approximately 2% of Tencent’s total issued share capital, which would reduce its stake in Tencent from 33,2% to 31,2 (the Transaction). Its stake in Tencent, which it bought for $32 million in 2001, was getting way too big for South African markets. Naspers’s value has grown 72-fold since 2004 on the back of the success of an early-stage investment in Chinese games developer Tencent … Following the Prosus listing, Naspers' weighting in Johannesburg's top 40 should fall to around 18%-19%, said Verster. As of 2018, Naspers had approximately a 31 percent stake in Tencent, becoming its largest shareholder, and Africa’s biggest public company. Disclaimer. As of Monday, Prosus’s market cap of R2.8-trillion is just about 20% less than its stake in Tencent. Now, Tencent’s market cap is $660bn in round numbers. NPSNY 1 Month Total Returns (Daily) Chart All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Naspers plans to carve out its internet businesses, including a US$133-billion stake in China’s Tencent Holdings that has long exceeded the South … (Photo by Charley Gallay/Getty Images for Airbnb), PHOTO: South African media group Naspers unveiled plans Monday to bundle its stakes in tech businesses including Tencent Disclaimer. But the windfall gains created a headache for Naspers. Tencent profit plunges 32% but its gaming business is recovering. Naspers head of investor relations Meloy Horn told Moneyweb last week that the group has no plans to sell or unbundle its stake in Tencent, viewing it as an appreciating asset. Naspers said that institutional investors in South Africa had been forced to trim their holdings in the company because its weighting had ballooned to 25% of the Johannesburg Stock Exchange, up from 5% five years ago. Naspers owns, or has controlling interest in, various businesses, including Prosus, Media24, and Takealot. The final sale was made at 67.50 euros, a discount to where shares were trading at that time, but a bit higher than Prosus' curre… Yet Naspers is worth just $100bn — enough to make it the largest company in Africa by market capitalisation but more than $30bn short of the value of its Tencent stake. Chinese tech giant could buy stake in Universal Music Group, Zoom's founder says he 'let down' customers. Most stock quote data provided by BATS. That's where the move to Amsterdam should help. The Naspers share-price discount to the value of its Internet-heavy portfolio of assets is growing even amid a post-pandemic shift to digital technology.. Shares in South Africa-based Naspers have climbed this year, pulled up more than 30% by the jewel in the crown, the company’s 31% stake in Chinese Internet giant Tencent. Here's why they're on Parler, Watch this 'infinite' music video of Billie Eilish's 'Bad Guy', Rideshare drivers demonstrate against rideshare companies Uber and Lyft during a car caravan protest on August 6, 2020 in Los Angeles. Tencent’s largest investor is listing its $134 billion stake in the Chinese internet giant in Europe. In 2018 they sold 2% of their Tencent stake, and netted $9.8 billion. CNN Sans ™ & © 2016 Cable News Network. Naspers has previously sold stakes in Indian. All times are ET. Jeremy Moorhead / CNN, An online movement has these Trump supporters convinced the election was stolen. Here's why, See Walmart's self-driving delivery trucks in action, This robotaxi from Amazon's Zoox has no reverse function, Watch: Airbnb founder stunned on live TV by stock price, Hear Ashton Kutcher's plea to lawmakers on proposed child abuse legislation, These Trump supporters say big tech is biased. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. The remaining investment is now worth $134 billion. - The drivers, organized by the Mobile Workers Alliance and Rideshare Drivers United unions, say Uber and Lyft's are pushing a "deceptive" November ballot initiative, which, if passed, they claim would "rewrite labor law" and turn app-based drivers into independent contractors, exempting companies such as Lyft and Uber from standard wage and hour restrictions. It paid $31m for its initial 47% stake, which has since been diluted, but the South African group coming under shareholder pressure in recent months to find ways to narrow its hefty discount to Tencent. Published Naspers paid $32 million in 2001 for a major stake in Tencent. Updated 1647 GMT (0047 HKT) September 11, 2019. It should become clearer to investors how its other bets are performing, which could determine whether the discount on the stock narrows further. Emerging markets media giant Naspers has raised $9.8-billion by selling a 2% stake in Chinese messaging behemoth Tencent, which has lost $51-billion in … In May, it netted $1.6 billion from the sale of its 11% stake … The deal also carries some risk for Naspers. The media and tech firm said Monday that it would remain the largest South African company on the Johannesburg Stock Exchange even after the spin-off lists in Amsterdam. Conditions and acknowledge our Privacy Policy Rights Reserved Images, photo: Peng/Getty... Listing its $ 134 billion stake in Tencent, becoming its largest shareholder, and biggest. % but its gaming business is recovering hear Ashton Kutcher 's plea to lawmakers on proposed abuse! Delayed by two minutes plea to lawmakers on proposed child abuse legislation, These supporters. 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