Success! In addition to Tencent, the new company will include Naspers’ stakes in Indian e-commerce startup Swiggy, Russian internet business Mail.ru and German food delivery company Delivery Hero. Jeremy Moorhead / CNN, An online movement has these Trump supporters convinced the election was stolen. All rights reserved. Naspers raised nearly $10 billion in March 2018 by reducing its stake in Tencent from 33% to 31%. PHOTO: Naspers announces its intention to sell up to 190 million Tencent Holdings Limited (Tencent) shares, equal to approximately 2% of Tencentâs total issued share capital, which would reduce its stake in Tencent from 33,2% to 31,2 (the Transaction). Naspers spun off most of its internet assets into Prosus just over a year ago in part to resolve the problem, but the move has made little difference. While Tencent is by far the company's most successful investment, Naspers has found success with other bets. "The listing of their classifieds business under the OLX brand could be the next step," said Charl Wolmarans, an analyst at Avior Capital Markets in South Africa. Africaâs most valuable company, Naspers, plans to separately list its internet assets in Amsterdam, creating a European traded tech giant that will house its $134 billion stake in Chinaâs Tencent. All times are ET. 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⦠Naspers to separate Tencent stake, web assets in Dutch listing. Tencent's largest investor is listing its $130 billion stake in the Chinese internet giant on Euronext Amsterdam. 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. All rights reserved. Success! Verification email has been resent. South African media group Naspers unveiled plans Monday to bundle its stakes in tech businesses including Tencent All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. 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. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Naspers Listing Looks to Unlock Value in $122 Billion Tencent Stake Africaâs most valuable company has set a July listing in Amsterdam, which will hold its internet assets As a result, Naspers traded at a discount of about 30%-35% of the value of its assets, said Jean Pierre Verster, founder and CEO of Protea Capital Management. In 2018 they sold 2% of their Tencent stake, and netted $9.8 billion. 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 holds 72% of Prosus and Prosus owns 31% of Tencent. Chinese tech giant could buy stake in Universal Music Group, Zoom's founder says he 'let down' customers. If an account exists, we've sent an email with a link to reset your password. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. London (CNN Business)Europe has a new tech giant. Even when Tencent is excluded, Naspers has delivered returns of more than 20% a year, considerably outperforming most equity markets, said Ruan Stander, a portfolio manager at Cape Town-based asset manager, Allan Gray. (Photo by Charley Gallay/Getty Images for Airbnb), PHOTO: Zhang Peng/Getty Images. Related Article 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. The simplest way to prove the point is to look at the value of Naspersâ indirect stake in Chinese consumer media giant Tencent. 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. American actor and tech investor Ashton Kutcher speaks to CNN about his urging of EU policymakers to grant tech giants like Facebook and Google a reprieve from new privacy rules that would prohibit them from using automatic detection tools to combat child pornography. Robyn Beck/AFP/Getty Images, Here's how Prop 22 could transform the gig economy, Watch astronauts arrive at International Space Station, smart tech overfishing spc intl_00015623.jpg, See Apple's new Macbooks with the M1 chip, Watch: People travel in Virgin Hyperloop for the first time, PHOTO: Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Earlier in 2020, Naspers sold another small chunk of its retained stake in Prosus, using the cash to buy back some of its own stock. Photo Illustration: Kena Betancur/Getty Images, Zoom's founder says he 'let down' customers. Password reset email has been resent. Using early June market cap figures for the Chinese companies, Naspersâ stake in Tencent should itself be worth over $125 billion. Most stock quote data provided by BATS. 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 companyâs 31% stake in Chinese Internet giant Tencent. (TCEHY) into a new company that will be listed in Amsterdam. Jun.25 -- Africa's biggest company by market cap reported a 72 percent increase in full-year earnings. Tencent, which owns the WeChat messaging platform and a host of payment apps and mobile games, is one of China's largest technology groups. Prosus shares soared 26% by the close, boosting its market value to €120 billion ($132 billion). CNN Sans ™ & © 2016 Cable News Network. But the windfall gains created a headache for Naspers. (Photo by Robyn Beck/AFP/Getty Images), PHOTO: Updated 1647 GMT (0047 HKT) September 11, 2019. Getty Images/SNL/YouTube/CNN. 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. Naspers before them traded for years at a similar discount to the value of that Tencent stake, sometimes getting to near 40% when sentiment was negative about the South Africa connection, or the ability of Naspers to do anything beyond that Tencent investment. All rights reserved. Halden Krog/Bloomberg via Getty Images, PHOTO: Naspersâs value has grown 72-fold since 2004 on the back of the success of an early-stage investment in Chinese games developer Tencent ⦠In 2012, 80% of Naspers stock price was based on their stake in Tencent and another 10% on their holding in Mail.ru. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. The firm owns 2.2% of Naspers. 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. 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 ⦠Tencent, the sprawling conglomerate that owns the WeChat messaging platform and a host of payment apps and mobile games, is one big reason behind the intense investor interest in Naspers. Naspers plans to carve out its internet businesses, including a US$133-billion stake in Chinaâs Tencent Holdings that has long exceeded the South ⦠That forced investors to sell Naspers' shares so they weren't overly exposed to a single stock. 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. SoftBankâs share of ⦠Tencent, the Chinese company 31% owned by Naspers, has had a storming year, with the share advancing by 43.4%, valuing the company at ⦠Please click the button below to agree to our Terms and Conditions and acknowledge our Privacy Policy. Naspers has previously sold stakes in Indian. Most stock quote data provided by BATS. It should become clearer to investors how its other bets are performing, which could determine whether the discount on the stock narrows further. In May, it netted $1.6 billion from the sale of its 11% stake ⦠Tencentâs largest investor is listing its $134 billion stake in the Chinese internet giant in Europe. But while the shareholders were happy with the return of their Chinese investment, their trust in what else Naspers was doing seemed to erode. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Disclaimer. That's where the move to Amsterdam should help. 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. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Factset: FactSet Research Systems Inc.2018. Yet Naspers is worth just $100bn â enough to make it the largest company in Africa by market capitalisation but more than $30bn short of the value of its Tencent stake. By Loni Prinsloo (Bloomberg) â Naspers Ltd. plans to carve out its internet businesses, including a $133bn stake in Chinaâs Tencent Holdings Ltd. that has long exceeded the South African technology investorâs own market value. © 2020 Cable News Network. Naspers $5bn share buyback plans signal unease with tech valuations Dutch-listed investment arm Prosus, best known for its stake in Chinaâs Tencent, says move is âa good use of capitalâ (WMT). Charley Gallay/Getty Images for Airbnb, Watch: Airbnb founder stunned on live TV by stock price, PHOTO: On Jan. 21, Naspers proposed selling more Prosus shares to institutional investors in Europe, and closed the sale the very next day. Though Naspers' market cap is still about 20% below the value of its Tencent stake, the gap has narrowed over the past month in anticipation of the spinoff. Its stake in Tencent, which it bought for $32 million in 2001, was getting way too big for South African markets. Investment from actively managed European, growth and technology funds is expected to top that, Naspers CEO Bob van Dijk said in a. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Here's why, See Walmart's self-driving delivery trucks in action, This robotaxi from Amazon's Zoox has no reverse function, Airbnb CEO Brian Chesky speaks onstage during "Introducing Trips" Reveal at Airbnb Open LA on November 17, 2016 in Los Angeles, California. Now, Tencentâs market cap is $660bn in round numbers. Naspers holds a 31% stake in WeChatâs owner, Tencent Holdings Ltd, which plunged as much as 10% in Hong Kong. A Warner Media Company. 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. Here's why they're on Parler, Watch this 'infinite' music video of Billie Eilish's 'Bad Guy', Here's how Prop 22 could transform the gig economy, Watch astronauts arrive at International Space Station, See Apple's new Macbooks with the M1 chip, Watch: People travel in Virgin Hyperloop for the first time, An online movement has these Trump supporters convinced the election was stolen. As of 2018, Naspers had approximately a 31 percent stake in Tencent, becoming its largest shareholder, and Africaâs biggest public company. To complete your CNN profile and ensure you are able to receive important account information, please verify your email address. Naspers owns, or has controlling interest in, various businesses, including Prosus, Media24, and Takealot. Tencent profit plunges 32% but its gaming business is recovering. It's now going to focus on growing global businesses in online classifieds, food delivery, and payments and fintech, van Dijk said. Listing the assets on the Euronext exchange in Amsterdam solves a problem for Naspers. One motivation for spinning off Prosus is to narrow that value gap. As of Monday, Prosusâs market cap of R2.8-trillion is just about 20% less than its stake in Tencent. In 2001, Naspers made an early, successful investment of US$32 million, in Tencent. All times are ET. Hear Ashton Kutcher's plea to lawmakers on proposed child abuse legislation, These Trump supporters say big tech is biased. Prosus also gives funds restricted to investing in European-listed companies the opportunity to get exposure to China's internet sector for the first time, Verster added. Called Prosus, the company was worth €95 billion ($105 billion) at listing, making it the biggest consumer tech stock in Europe and the second biggest tech company in the region behind German software group. And its licensors to accurately value of their Tencent stake, and dominated the $ 103 billion groupâs finances affiliates... 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