Naspers said a newly created entity containing assets including a stake in Chinese internet giant Tencent Holdings will be valued at about US$100-billion (R1.5-trillion).
Africa’s largest company by market value received shareholder backing last week to proceed with the listing of Prosus in Amsterdam next month. Alongside the Tencent stake, the new company will hold businesses from Brazil to Germany in industries such as online food delivery and classified advertising.
A value of $100-billion would make only Royal Dutch Shell and consumer goods giant Unilever bigger in Amsterdam by market capitalisation. The company would overtake ASML Holding, a semiconductor gear maker priced at about $89-billion.
Naspers opted to spin off Prosus — in which it will keep a 73% stake — to ease its dominance of Johannesburg’s stock exchange and help reduce a valuation gap between the Cape Town-based company and its stake in Tencent. The new group’s assets were valued at about $34-billion as of end-June, Naspers said in a statement on Monday.
Naspers shares erased gains after the publication of the anticipated market value of Prosus, and traded 0.1% higher at R3 421.11 as of 11.52am in Johannesburg.
The stock could gain by a further 40% to R4 800, JPMorgan Chase & Co analysts led by JP Davids said in a note published on Monday. “In addition to Tencent’s out-performance, we expect the recent compression in the holding company’s discount to be sustained as it reduces its South African sovereign exposure.”
Prosus had net income of about $1.4-billion for the three months to June, compared to $1.1-billion the previous year, Naspers said.
JPMorgan, Goldman Sachs Group and Morgan Stanley are the main financial advisers on the Prosus listing. — Reported by Loni Prinsloo and Renee Bonorchis, with assistance from Joost Akkermans, (c) 2019 Bloomberg LP