All rights reserved. Naspers will continue to own at least 73% of Prosus, which also holds other technology assetsNaspers estimates that demand from passive investors for shares in Prosus could total as much as $3 billion, following the stock's inclusion in a number of large global indexes. Following the Prosus listing, Naspers' weighting in Johannesburg's top 40 should fall to around 18%-19%, said Verster.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.
That forced investors to sell Naspers' shares so they weren't overly exposed to a single stock. Yet five months later, the discount persists. Tencent, which owns the WeChat messaging platform and a host of payment apps and mobile games, is one of China's largest technology groups. Connecting... About Policies Sustainability Governance and risk ... AEX: Prosus prices multi-tranche USD and EUR bond offerings. Please visit the official Government information portal for Coronavirus by clicking Click to subscribe to real-time analytics on NPSNY Now read: ProSiebenSat.1 Media SE 2020 Q2 - Results - Earnings Call Presentation » DURBAN - JSE heavyweights Naspers and Prosus shed more than 4percent and 5percent, respectively, on Friday, exposed to financial material risk via their stake in Tencent, after US President Donald Trump prohibited US residents from doing business with Chinese-owned TikTok and WeChat apps.Naspers owns a 31percent stake in Tencent, the owner of WeChat, through its subsidiary, Prosus.Tencent declined by 10percent and shed more than $45billion in market capitalisation in Hong Kong.Prosus declined to R1654.69 a share on JSE on Friday afternoon, but closed 3.82percent lower at R1676.34, while Naspers fell to R13073, and closed 4.18percent down at R13462.Both stocks have had a good run in 2020, with Naspers gaining more than 23percent since the beginning of the year, while Prosus has gained more than 35percent so far this year.Peter Takaendesa, the head of equities at Mergence Investment Managers, said Tencent had significant direct investments in US online gaming companies, as well as business relationships with many other US businesses, which sell their content on Tencent’s platforms in China.“This could be a material financial risk to Tencent if it is forced to exit some of those investments at valuations below their intrinsic value, but our understanding is that these investments are currently not part of the executive orders,” he said.He said the weaker rand had been helping Naspers and Prosus to limit the loss compared to the Tencent move, but this could change at any time as daily moves in share prices were driven more by sentiment than pure fundamentals.Takaendesa said although the technology wars could limit Tencent’s international expansion in the long run, the business remained in a strong position in China, with many growth drivers as the digital migration of many traditional industries was continuing to play in their favour.“One has to keep in mind that global technology shares have performed very well so far in 2020 and any reactions to news flow also need to be seen in that context,” he said.Takaendesa added that TikTok was estimated to have more than 100million users in the US and, therefore, had a meaningful direct presence.However, WeChat had very limited direct exposure in the US and was not material to Tencent.Wealthy Hong Kong investors stay put with crisis plans ready The listing by South African media conglomerate Naspers of assets including part of its Tencent stake via the new Prosus vehicle in Amsterdam in September was heralded as a way to reduce the deep discount to net asset value (NAV) at which Naspers shares trade. The firm owns 2.2% of Naspers.It's now going to focus on growing global businesses in online classifieds, food delivery, and payments and fintech, van Dijk said.
Investment from actively managed European, growth and technology funds is expected to top that, Naspers CEO Bob van Dijk said in a The deal also carries some risk for Naspers. Naspers paid just $32 million back in 2001 for its stake in Tencent. Tencent declined by 10percent and shed more than … Naspers subsidiary Prosus NV, which holds the company’s stake in Tencent, retreated 5.4%. It should become clearer to investors how its other bets are performing, which could determine whether the discount on the stock narrows further.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. Naspers is a global internet group and one of the largest technology investors in the world. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. 29 July 2020 Prosus delivers solid results for the twelve months ended 31 March 2020. Disclaimer.
Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates.Chinese tech giant could buy stake in Universal Music GroupChinese tech giant could buy stake in Universal Music GroupNavarro: This is the issue with Microsoft potentially buying TikTokFiery exchange erupts at congressional antitrust hearingUnder questioning, Zuckerberg admits Instagram was a 'competitor'Congresswoman grills Facebook CEO on copying competitorsRussian misinformation isn't new. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. “This directly impacts Naspers and Prosus via Tencent … 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. All rights reserved.
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Naspers holds a 31% stake in Tencent, through Prosus. That investment is now worth €118 billion ($130 billion).