This archive report was first published on 26 August 2019.
On August 26, 2019, Naspers Ltd, Africa's most valuable company, secured enough votes from its shareholders to proceed with listing Prosus NV in the Dutch Stock market on September 11. This move will allow the company to list its stake in Chinese firm Tencent Holding Ltd on the Amsterdam Stock Exchange.
The listing will ease Naspers' dominance on the Johannesburg Stock Exchange, allowing the company to revalue its different portfolios. Naspers stock constituted about 25% of JSE's main index, making it a significant player in the market.
According to Bloomberg, the listing will separate Naspers' assets into different entities, allowing investors to revalue the company's portfolio. Naspers' stake in Tencent is discounted at Ksh10 trillion ($98 billion) against its current market value of Ksh12.9 trillion ($125 billion).
Naspers will own 73% in Prosus NV after the listing in Amsterdam. The new company will focus on long-term value creation by building leading technology companies to improve lives. Prosus will also provide an opportunity for international investors to access Naspers' unique portfolio.
According to Bob Van Dijk, Naspers CEO, the Tencent spinoff will provide a platform to attract incremental investor capital. The listing will also attract new investors from abroad, providing a boost to the company's growth prospects.
