You are currently viewing our desktop site, do you want to visit our Mobile web app instead?
 Registered users can save articles to their personal articles list. Login here or sign up here

Naspers to list internet assets abroad

‘NewCo will give global Internet investors direct access to Naspers’s attractive and unique portfolio of international Internet assets.’

In a significant move aimed at unlocking shareholder value, Naspers announced on Monday that it will form a new global consumer Internet group that it plans to list in Europe.

NewCo will be listed on Euronext Amsterdam, with a secondary, “inward” listing on the JSE.

“NewCo will comprise all of Naspers’s Internet interests outside South Africa including, among others, its companies and investments in the online classifieds, payments, food delivery, e-retail, travel, education and social and Internet platforms sectors,” the group said in a statement to shareholders before markets opened in Johannesburg on Monday.

“These businesses are some of the world’s leading and fastest-growing internet brands, such as Tencent, Mail.ru, OLX, Avito, Letgo, PayU, iFood, Swiggy, DeliveryHero, Udemy, eMAG and MakeMyTrip.”

NewCo will be roughly 75% owned by Naspers, with a free float of about 25%.

“As Europe’s largest listed consumer Internet company by asset value, NewCo will give global Internet investors direct access to Naspers’s attractive and unique portfolio of international Internet assets,” Naspers said.

Approval for the proposed transaction has been secured from national treasury and the South African Reserve Bank “on terms and subject to conditions customary to international transactions of this nature”.

Naspers expects the transaction to be implemented no earlier than the second half of 2019.

‘Significant step’

“The proposed transaction is a significant step for Naspers and presents an appealing new opportunity to global Internet investors to have access to Naspers’s attractive and unique portfolio of international Internet assets. It is intended for the proposed transaction to reduce Naspers’s weighting on the JSE and at the same time opening investment in Naspers to a broader category of investors.”

It said its “outsized weighting” on the JSE exceeds most South African institutional investors’ single-stock limits. As a result, many South African institutional investors have been forced to sell their shares in Naspers as business grew into a global Internet giant.

“The listing on Euronext Amsterdam envisaged in the proposed transaction is expected to help address this market issue and is the next significant action by management to create shareholder value,” Naspers said.

Recent initiatives to unlock shareholder value have included increasing the capacity of Naspers’s US ADS programme, trimming its stake in Tencent, exiting several businesses, driving growth across its core Internet businesses and turning its online classifieds business and several of its other early-stage investments to profitability.

Earlier this month, it unbundled MultiChoice Group on the JSE to Naspers shareholders. “The move completed Naspers’s transformation to a global consumer Internet company, with effectively all revenues and profits now coming from online.”

Naspers said it will retain its primary listing on the JSE and will continue to directly hold its South African assets, Takealot and Media24, alongside its majority stake in NewCo.

NewCo’s free float is expected to be created by Naspers through a capitalisation issue of NewCo shares to Naspers shareholders. Shareholders will also be able to choose to receive more shares in Naspers instead of shares in NewCo, subject to certain limits, it said.

“This is intended to provide flexibility to shareholders. It is intended that the board and governance structures of NewCo will mirror those of Naspers. Further details regarding the implementation of the proposed transaction will be provided in due course.”

After the listing of NewCo on Euronext Amsterdam, Naspers will remain the largest South African company listed on the JSE by market capitalisation, and Naspers will continue to invest in South Africa, it said.  — © 2019 NewsCentral Media

This article was originally published on TechCentral here

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

AUTHOR PROFILE

COMMENTS   7

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

And the JSE cake gets smaller and smaller – 20 % of the trade in Naspers will soon evaporate from this market. Value will now be created offshore and I am convinced, the old Colonial masters will create a lot of value- that will be enjoyed locally.
I wonder where Naspers shareholder activists will now go to complain.
Luckily the moaning and groaning about the ‘’apartheid’’ Media company will grind to a halt now!
Well done Naspers – this is indeed a big ‘’toffee’’ for all your critics!

The clandestine exodus of a first world economy is, from SA, is continuing unabated and may well begin to accelerate.

This is however not the worst – the chilling fact is, nothing replaces it, but an unabated return to it natural place in evolution; ie where it was found three-hundred- to two-hundred years ago.

The left-wing (aka Socialists/Communists/Marxists) like to call themselves “progressives” – few things are more laughable.

Socialism/Communism/Marxism (funny how the exactly the same thing has so many different names – ie these are only a few of them) is the most REGRESSIVE doctrines ever.

Socialism/Communism/Marxism will take any functioning modern economy and destroy it – iow return it a primitive, subsistence, pre-industrial economy.

There are an endless number of examples – from the Soviet Union, Cuba, North-Korea, most of Africa to Venezuela, but the best example is China. Eg in the eighties, under a socialist economy, people were dying of hunger en masse.

Since China moved to a FREE-MARKET ECONOMY it has catapulted itself to one of the most prolific economies on earth.

Why any country would opt for anything other than a free-market economy – is beyond any rational intellect…

Commie : please explain your outcome? Whether the entity that owns TenCent is Dutch or local does not change that it has zero call on cashflows and zero say in stranger or operations, despite reporting it as an associate. Hooray IFRS.

The right way was unbundling the underlying shares. But problem is unbundling Chinese foreign interests that are not supposed to have voting and/or economic interests into markets that expect shares to be shares.

Ag shame for the Chinese?

I need a whiteboard map to figure this out!

So Naspers sells its offshore stuff to DutchCo. Day zero it owns all of DutchCo but Naspers unbundles up to 25% of the shares it is owed in DutchCo to its shareholders? Maybe more than 25% if more Naspers shareholders choose to take DutchCo shares.

Old Naspers then has the SA stuff and about 75% of DutchCo.

Roughly correct?

Had to happen. By listing the international assets separately Naspers is hoping that the market will value these fully and not at <0.

Real shame it could not happen on the JSE…

This is a risk for the JSE Ltd, as Naspers makes up some 25% of value traded each day on JSE. Presumably interest in Naspers on the JSE will decrease if international investors can access these assets via Amsterdam.

We will not see the negative valuation as the 75% of the DutchCo will overhang. Well, we could imply it but the directors will still get paid as if it doesn’t exist.

Nice job : get paid as the directors of a brazillion dollar company.

Twice

Load All 7 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

SHOP NEWSLETTERS TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: