Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      ‘System offline’ scourge to end, says Schreiber – but industry must pay

      23 June 2025

      Why the spectrum gold rush may soon be over

      23 June 2025

      Tech stability key to getting South Africa off damaging financial grey list

      23 June 2025

      Naspers shifts to an AI-first strategy – and it’s paying off

      23 June 2025

      Letter: South Africa risks missing AI wave while world surges ahead

      23 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TechCentral Nexus S0E3: Behind Takealot’s revenue surge

      23 June 2025

      TCS | South Africa’s Sociable wants to make social media social again

      23 June 2025

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Investment » Beggars can’t be choosers: Naspers moves to appease shareholders

    Beggars can’t be choosers: Naspers moves to appease shareholders

    By Agency Staff27 June 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Can experienced venture capital investors time a market top in technology stocks?

    That’s the question on investors’ minds after the surprise announcement by Tencent Holdings’ top shareholder that it will sell some of its stake in the Chinese tech giant to finance a buyback of its own stock.

    Prosus, majority-owned by Naspers, has also recently completed the sale of its US$3.7-billion stake in another Chinese tech company, JD.com.

    It is an ominous sign. In the past, Naspers has managed to sell its Tencent shares more or less at market tops, both in March 2018 and April 2021. Just a year ago, it pledged not to sell any more Tencent shares for three years. But then came Monday’s U-turn. Did Naspers take profit from the mini tech rally this month — spurred by market bets that Beijing’s year-long regulatory crackdowns are over?

    Share repurchases are an effective way for Naspers to narrow its valuation discount

    Thanks to Beijing’s heavy-handedness, this fear will bubble up on virtually any negative news on China tech. However, it is worth remembering that Naspers has financial considerations of its own — and its actions may not express any views on investing in China at all.

    Prosus announced its financial full-year results Monday, with the market fixated on its widening holding company discount, estimated to be around 55% by UBS Group. Selling some of its 29% Tencent stake — now worth $134-billion — which accounts for 77% of Prosus’s value in a sum-of-the-parts analysis, to finance share buybacks could revive its dismal stock performance. Just like what SoftBank Group has done, share repurchases are an effective way for Naspers to narrow its valuation discount.

    Conglomerate discount

    Take a look at Prosus’s conglomerate discount over time. Much of the widening gap came this year, long after Beijing’s big tech crackdowns. One factor at play is Prosus’s sizeable exposure to Russia. It owns 100% of Avito, an online classified platform, and a 27% stake in VK, or formerly Mail.ru. They are likely worth close to nothing now.

    Meanwhile, there is also the Nasdaq meltdown and a near freeze of initial public offerings in tech. According to UBS, Naspers’s stakes in food delivery and classified ad start-ups account for about 17% of its net asset value. How much are they worth now?

    Beggars can’t be choosers. When there is a deep valuation discount and pressure from its investors, Naspers can’t really time market tops and must appease with cash handouts instead. For once, don’t read too much into this news.  — Shuli Ren, (c) 2022 Bloomberg LP



    JD.com Naspers Prosus Tencent
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEskom vows disciplinary action as generating capacity slips
    Next Article Takealot is ready for the Amazon onslaught: Bob van Dijk

    Related Posts

    Naspers shifts to an AI-first strategy – and it’s paying off

    23 June 2025

    TechCentral Nexus S0E3: Behind Takealot’s revenue surge

    23 June 2025

    Prosus profit surges 47% as e-commerce bet pays off

    23 June 2025
    Company News

    IoT connectivity management in South Africa – expert insights

    23 June 2025

    Let’s reimagine Joburg using the power of tech, data and AI

    23 June 2025

    Netstar doubles down on global markets while backing SA growth

    23 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.