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prosus tencent discount

Posted on: December 27th, 2020 by No Comments

Royal A One Brings Discount Car Rental Deals for Travelers Throughout Washington 1 MINIMALLY INVASIVE PHYSICIANS RECOGNIZED AS “TOP DOCS” BY WASHINGTONIAN MAGAZINE 2016 2017 2018 2019 Having failed to clinch before valuations went through the roof and still grappling with the long-standing valuation mismatch,  he was left with little choice than to hand the money to shareholders. Naspers, Prosus & Tencent: Twin discounts . Prosus is an Amsterdam-listed internet conglomerate. Van Dijk learned the hard way that shareholders are skittish about how Prosus uses its funds for new dealmaking. Prosus owns a 30.9% stake in Asia’s online software and payments giant Tencent worth nearly 200 billion euros at Thursday’s closing price. Prosus is a venture capitalist, making high-risk high-reward investments. Tencent stock has soared 57% increase this year, easily making it the best performer in the firm’s portfolio. Please read our Comment Policy before commenting. But just weeks after the listing, Prosus made a £4.9-billion bid to acquire the British food delivery platform Just Eat. The Naspers/Prosus double-discount structure, coupled with excessive executive remuneration in the view of many market analysts, is a major headache that will be difficult to rectify. Buy. This was also a problem for Naspers Ltd., the South African company that spun off Prosus in 2019 in part to try and reduce the discount. South African e-commerce group Naspers is listing its international internet assets, including its 31% stake in China's Tencent <0700.HK>, in Amsterdam on Wednesday under the name of Prosus. Simple. Prosus (OTCPK:PROSF) is selling at approximately a 30% discount to net asset value. The company’s shares tumbled, reopening the valuation gap to the Tencent holding. Prosus shares closed 2.97 percent up at R1 626.93, while Naspers shares closed 3.98 percent higher at R3 152.32. Business Day TV caught up with Ziyad Joosub from Nedbank CIB for his thoughts on this move. That's where the move to … As can be seen from Figure 1 , these discounts to NAV have gone pretty much one way since Prosus listed on 11 September 2019. To close the gap, Naspers spun off 27.5% of these international investments into a separate company called Prosus … The Amsterdam-based company derives the entirety of its 141 billion-euro ($165 billion) market capitalization from its 31% stake in Tencent Holdings Ltd., the Chinese e-commerce giant. The global investment group is the largest consumer internet company in Europe, and among the largest technology investors in the world, operating across a variety of platforms and geographies. Prosus owns a 30.9% stake in Asia’s online software and payments giant Tencent worth nearly 200 billion euros at Thursday’s closing price. There should be a discount to listed net asset value (NAV) of about 25% for Prosus and about a further 20% for Naspers, says Malan. He has mapped out a sound plan to build Prosus on three pillars: online payments, food delivery and classifieds. In research on Smart Karma on January 22, Artherton points out that direct investment in Tencent since the Prosus listing would have outperformed buying either Naspers or Prosus. The company is valued substantially less than its stake in Tencent alone. Read more at the SA government's online coronavirus portal or use the 24-hour public hotline: 0800 029 999. Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. Prosus shares in Amsterdam were trading 1.9% higher at 92.72 euros ($110.04) on Monday morning. South African e-commerce group Naspers is listing its international internet assets, including its 31% stake in China's Tencent <0700.HK>, in Amsterdam on Wednesday under the name of Prosus. Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January. It’s hard to find other investments that can deliver similar returns. On Friday, van Dijk seemed to tacitly admit the struggle to … An announcement in recent days that Prosus, which houses the company's international assets including the investment in Tencent, will shower investors with more than R82bn in cash through the repurchase of its own shares, is the latest attempt to tackle the valuation shortfall, which stood at $59bn. Prosus NV, which became Europe’s largest technology company this week, has always been something of a Gordian knot for investors. ... Prosus, unbundled from Naspers last year, also owns a 31 percent stake in Tencent. We build leading companies that empower people and enrich communities See all our companies. Photographer: Deng Qingle/China News Service. At the end of the day, having a smaller discount to NAV would be a good thing for existing shareholders,” Treherne said. In the days immediately after the Amsterdam listing in … Source: Bloomberg. Prosus’s own value was just 135 billion euros as of Thursday’s close, including other investments in online classified, payment and food delivery businesses. If Prosus is included in the Eurostoxx 50 index in September as expected, it’s hoped the investment inflows will drive the price up and help narrow the discount between Prosus and Tencent… It was when the stake started eclipsing Naspers’ market capitalisation that investors started asking uncomfortable questions about Van Dijk’s bonuses and heaped pressure on him to take steps to unlock value. The global investment group is the largest consumer internet company in Europe, and among the largest technology investors in the world, operating across a variety of platforms and geographies. Sell. (Bloomberg Opinion) -- Prosus NV, which became Europe’s largest technology company this week, has always been something of a Gordian knot for investors.The Amsterdam-based company derives the entirety of its 141 billion-euro ($165 billion) market capitalization from its 31% stake in Tencent Holdings Ltd., the Chinese e-commerce giant. Indeed, it trades at a $59 billion discount to the value of that holding, meaning that investors essentially ascribe a negative value to its other investments, such as Russia’s Mail.Ru Group Ltd. and Brazilian food delivery platform iFood. MARKET WRAP: JSE rises for second day while rand slips amid Covid-19 spike. Prosus said on Friday it would purchase up to R82 billion in its own and parent Naspers shares, as part of efforts to narrow a discount between its share price and underlying assets. That was all down to Tencent’s rapid growth, which helped Naspers grind out double-digit profits and deliver an uninterrupted flow of dividends. Register (it’s quick and free) or sign in now. Prosus share price leapt to R1 650 on Friday, while Naspers shares also gained more than 4 percent to R3 171. Talk about nice-to-have corporate headaches, Bob van Dijk, the boss of Prosus, a unit of Naspers’ global internet behemoth, will tell you all about it. Prosus's discount to net asset value is 40%. The massive Tencent stake is funding these risky investments. Naspers shares in Johannesburg were … That may happen, but is unlikely. In this write-up, I will dive deep into the company’s high-risk high-reward investments, which is one of the major reasons why this discount is occurring. 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