Naspers to separate from Tencent and list new internet business in Amsterdam

We’ll offer our existing shareholders the opportunity to swap out some of their holding in Naspers for a holding in this newly listed subsidiary company of Naspers…

Basil Sgourdos, CFO - Naspers

Down the line, it will affect us… NewCo is really the heart of Naspers… Over time people will emigrate their trading to Amsterdam… We’ve seen it in Old Mutual, we’ve seen it in Anglo American… Lower trade in Naspers will translate into lower trade on the JSE…

David Shapiro, Deputy Chair - Sasfin

We’re not worried at all. Naspers has done the right thing for Naspers… they had to do this… I think it was very elegant.

Nicky Newton-King, CEO - JSE

Naspers will soon start separating from its global internet assets – including its $133 billion stake in Tencent – which it will then list on the Euronext Amsterdam stock exchange.

The Cape Town-based company is Africa’s largest.

It accounts for about 25% of the entire Johannesburg Stock Exchange (JSE).

Roughly 25% of Naspers’ market cap will have moved to Amsterdam once the deal is complete.

Naspers will retain control of the new internet firm – called ‘NewCo’, for now.

NewCo will be Europe’s biggest listed consumer internet company.

The Money Show’s Bruce Whitfield interviewed Basil Sgourdos (CFO at Naspers), David Shapiro (veteran stockbroker and Deputy Chair at Sasfin) and Nicky Newton-King (CEO at JSE).

Listen to the interview in the audio below (and scroll down for more quotes from it).

This is not a spinoff or an unbundling…

Basil Sgourdos, CFO - Naspers

…We have some index trackers that won’t be able to take NewCo shares…

Basil Sgourdos, CFO - Naspers

Our existing shareholders will own 25% of this newly listed subsidiary…

Basil Sgourdos, CFO - Naspers

Naspers will still remain primarily listed on the JSE… it will remain the largest company… this is to solve a structural problem we have… We trade at a widening discount… the correlation between the two [Naspers and Tencent] is almost identical…

Basil Sgourdos, CFO - Naspers

We continue to unlock value for shareholders…

Basil Sgourdos, CFO - Naspers

Naspers will remain a 75% shareholder of this new entity…

Basil Sgourdos, CFO - Naspers

We don’t think it’ll be sooner than the second half of this year…

Basil Sgourdos, CFO - Naspers

I’m not complaining… There’s a lot of talent there… in the end it’ll add more value...

David Shapiro, Deputy Chair - Sasfin

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