Naspers plans to sell shares in Prosus - will it decrease the Tencent gap?

Naspers plans to sell about 22 million shares in Prosus to increase the free float of its European-listed Internet spin-off.

The sale is expected to increase the Prosus free float to 27.5%.

Naspers has seen significant interest in Prosus from technology investors.

So if you look at the value of Naspers, it is way less than its sum of the parts. So Naspers is trying to close that gap. Naspers is now selling some of the Prosus assets at a discount to what it's worth to buy back their own Naspers shares in the hope that it will close the discount.

Piet Viljoen, Chairman - RECM

The easy way to create value for shareholders would be very simply to unbundle its stake in Tencent. That would release value immediately because shareholders would get the full value of Tencent.

Piet Viljoen, Chairman - RECM

Listen to the full interview below.

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This article first appeared on CapeTalk : Naspers plans to sell shares in Prosus - will it decrease the Tencent gap?


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