South Africa’s Internet group Naspers, Tencent’s largest shareholder, has waived its pledge not to sell shares in China’s most valuable companies.
Naspers, which owns 29% of Tencent through Amsterdam-listed international investment arm Prosus, said on Monday that it would “start selling a small number of common stock.” .. .. Fund the repurchase of our shares “in a regular and orderly manner.”
last year NaspersListed on Johannesburg, has invested in global internet assets that span food delivery, payments, and classified advertising, and has spent another three years after disposing of some of its shares only twice in decades. Promised not to sell Tencent’s shares.
This move is the latest attempt by Naspers and Prosus to close the gap between their assessments. Tencent Stake. This follows the recent rebound in Tencent’s stock, which fell from a high in early 2021 as Beijing cracked down on the country’s technology sector.
Since the stock price of Naspers could not reflect the value of Tencent’s stock, the group created and listed Prosus in 2019 and now owns Tencent’s stock. But the rating gap is now plagued by Prosus.
“Tencent supports the withdrawal of voluntary restrictions on the sale of Tencent shares by Prosus,” Naspers said. He added that the daily sales of Tencent shares “account for a small percentage of the average daily trading volume of Tencent shares.”
“We can run [the buyback] Bobvan Dijk, Chief Executive Officer of Naspersand Prosus, said: He added that the net asset value of Prosus would be increased on a per-share basis by the repurchase program. This means that “as a result of this, there will be an increase in tencent per share.”
This year’s massacre of Internet stocks has reduced the value of Prosus’s net worth, “increasing discounts on the group’s total parts to unacceptable levels,” the group said in an annual result released Monday. ..
According to Prosus, the e-commerce business grew 50% in the year to the end of March, but revenues fell 23% as the company increased its investment and Tencent’s investment was overseen by regulators in China. That’s $ 3.7 billion.
Prosus shares fell one-third before Monday’s repurchase announcement. This resulted in stocks rising more than 10% in early trading.
“As long as the level of transaction discounts on the Group’s underlying net asset value continues to rise, repurchases will take place,” Naspers said. It also asks shareholders for permission to repurchase up to half of Prosus’s outstanding shares and indicates the size of the repurchase program.
Prosus also revealed on Monday that it has sold over $ 3.6 billion in its e-commerce group in China. JD.com Shares received from Tencent to enhance the rating of investment grade bonds.
Prosus is spending a quarter of the $ 50 billion invested in the last six years on repurchases. Last year, we invested more than $ 6 billion in Internet assets, including the acquisition of Indian settlement company Bill Desk.
“At this point, we’re paying attention to M & A … There are good deals in the market, but on the other hand, the cost of capital is rising for us and everyone,” Van Dijk said. He said the company wasn’t interested in buying Grubhub, a struggling US food delivery company.
Naspers has previously resisted shareholder pressure to spin off Tencent shares directly to investors because of high taxes and long-term strategic goals.
“It’s our belief that eliminating Tencent isn’t in the interests of shareholders,” Van Dijk said. Compared to spin-offs, buybacks are “substantially frictionless,” he said.
Naspers sells more Tencent shares to revive shares
Source link Naspers sells more Tencent shares to revive shares