The offers that appear in this table are from partnerships from which Investopedia receives compensation. Naspers told the paper that it doesn’t plan on selling any more of its Tencent shares for at least three years. Naspers has previously sold stakes in Indian. Naspers Ltd. said a newly created entity containing assets including a stake in Chinese internet giant Tencent Holdings Ltd. will be valued at about … The stock sale marks the first time Naspers is selling any of its stake in Tencent, which it has held since 2001 when it spent $34 million on the shares, reported The Wall Street Journal. "The listing of their classifieds business under the OLX brand could be the next step," said Charl Wolmarans, an analyst at Avior Capital Markets in South Africa. Tencent, the Chinese company 31% owned by Naspers, has had a storming year, with the share advancing by 43.4%, valuing the company at … Prosus has a market capitalization of about 135 billion euros ($158 billion), while the Tencent stake is worth about 193 billion euros … Naspers owns a third of Tencent, the fastest-growing internet company in the world. NPSNY 1 Month Total Returns (Daily) Chart Naspers $5bn share buyback plans signal unease with tech valuations Dutch-listed investment arm Prosus, best known for its stake in China’s Tencent, says move is ‘a good use of capital’ Therefore, Naspers holds an effective 22% of Tencent (72% x 31%). In addition to that it has positions in Mail.ru Group, a Russian internet company that operates one of the largest social networks in that country. Much of Naspers’ growth … Naspers Limited (NPSNY), the South African internet and media company, is selling $10.6 billion of its Tencent Holdings (TCEHY) stock, equal to about 2 percent of the total outstanding shares. But the windfall gains created a headache for Naspers. Coverage initiated is when a brokerage or analyst issues their first rating on a particular stock, and is especially relevant after a company has gone public. That's where the move to Amsterdam should help. Much of Naspers' growth in … The proceeds of the stock sale will go to “reinforce” the balance sheet of Naspers and to accelerate the growth of its classifieds, online food delivery and fintech businesses around the world. Naspers paid $34 million for its original Tencent stake in 2001, and Tencent is now one of the world's most valuable companies. Disclaimer. The Chinese company has a market capitalization of around $500 billion. London (CNN Business)Europe has a new tech giant. -10.50 -1.68% Naspers Ltd. plans to carve out its internet businesses, including a $133-billion stake in China’s Tencent Holdings Ltd. that has long … Naspers paid $34 million for its original Tencent stake in 2001, and Tencent is now one of the world's most valuable companies. The deal also carries some risk for Naspers. Naspers paid $32 million for a 46.5 percent stake in 2001, in the Chinese company’s early stages. A Review of Pink Sheet Stocks and How Investors Can Trade Them, China to Woo Foreign-Listed Tech Giants Back Home. One motivation for spinning off Prosus is to narrow that value gap. ”In reporting quarterly results, Tencent said it plans to increase its investments in video, payments and artificial intelligence. The return makes Naspers’ stake in Tencent among the top-performing venture investments of all time. That investment is now worth €118 billion ($130 billion). It’s about 14 months since the listing and the gap between the market value of Naspers and Prosus relative to their Tencent stake has widened rather … All times are ET. Naspers before them traded for years at a similar discount to the value of that Tencent stake, sometimes getting to near 40% when sentiment was negative about the South Africa connection, or the ability of Naspers to do anything beyond that Tencent investment. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. That forced investors to sell Naspers' shares so they weren't overly exposed to a single stock. Emerging markets media giant Naspers has raised $9.8-billion by selling a 2% stake in Chinese messaging behemoth Tencent, which has lost $51-billion in value in the past two days. It accounted for 25% of the combined value of the 40 biggest companies on the Johannesburg Stock Exchange — up from 5% just five years ago. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Updated 1647 GMT (0047 HKT) September 11, 2019. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Tencent Holdings Limited announced on Friday that a Tencent-led consortium has exercised a call option to increase its stake in Universal Music … Prosus also gives funds restricted to investing in European-listed companies the opportunity to get exposure to China's internet sector for the first time, Verster added. The value of the Tencent stake still eclipses the value of the entire company. But Naspers trades at a 30% discount to the value of its Tencent stake. This puts Naspers in a familiar position. All rights reserved. Called Prosus, the company was worth €95 billion ($105 billion) at listing, making it the biggest consumer tech stock in Europe and the second biggest tech company in the region behind German software group. CNN Sans ™ & © 2016 Cable News Network. Tencent’s largest investor is listing its $134 billion stake in the Chinese internet giant in Europe. David Einhorn is a hedge fund manager known for his short selling strategy. It should become clearer to investors how its other bets are performing, which could determine whether the discount on the stock narrows further. Net income for the last quarter of 2017 jumped 98% to $3.29 billion while the 51% increase in revenue was weaker than what analysts were looking for. On Wednesday, the Tencent stake, since diluted, was valued at around $131 billion. The money will also be used for any growth opportunities that Naspers sees arise. Naspers paid $34 million for its original Tencent stake in 2001, and Tencent is now one of the world’s most valuable companies. A retail industry ETF is an exchange-traded fund that invests in retail companies. But Naspers is already trading at a massive 30% discount to the value of its stake in Tencent. While Naspers has been around since 1915, created back then as a newspaper publisher, its value has soared in large part because of its stake in Tencent. Though Naspers' market cap is still about 20% below the value of its Tencent stake, the gap has narrowed over the past month in anticipation of the spinoff. It's now going to focus on growing global businesses in online classifieds, food delivery, and payments and fintech, van Dijk said. Much of Naspers' growth … Naspers Listing Looks to Unlock Value in $122 Billion Tencent Stake Africa’s most valuable company has set a July listing in Amsterdam, which will hold its internet assets Naspers' announcement comes just after Tencent reported results for the last three months of 2017 and warned that it will give up short-term margins to go after growth initiatives. Naspers plans to carve out its internet businesses, including a US$133-billion stake in China’s Tencent Holdings that has long exceeded the South African technology investor’s own market value. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Naspers was unfazed by that, telling Bloomberg that it thinks Tencent is “one of the very best growth enterprises in any industry in the world, managed by an exceptionally able team. Prosus shares soared 26% by the close, boosting its market value to €120 billion ($132 billion). Pink sheet companies are not usually listed on a major exchange. As a result, Naspers traded at a discount of about 30%-35% of the value of its assets, said Jean Pierre Verster, founder and CEO of Protea Capital Management. The Securities and Exchange Commission (SEC) does not regulate the pink sheet filing requirements. By using Investopedia, you accept our. Given that Naspers is worth roughly 30% less than the value of its 73% stake … The firm owns 2.2% of Naspers. That stake is now worth close to $132bn and has turned SoftBank into one of the most powerful tech investors in the world. Because Naspers has gone up so much in value – largely thanks to its stake in Tencent – Naspers now makes up roughly a quarter of the value of the main South Africa stock index. Tencent, which owns the WeChat messaging platform and a host of payment apps and mobile games, is one of China's largest technology groups. The simplest way to prove the point is to look at the value of Naspers’ indirect stake in Chinese consumer media giant Tencent. Many of the achievements are the result of investment we made years ago," the company's president, Martin Lau, said at a media briefing in Hong Kong covered by CNBC. The investment has … That sank shares, with the stock down 5%, according to Bloomberg. In a press release the company said that with the move to sell up to 190 million shares of the Chinese company behind the popular WeChat messaging app, it will reduce its stake to 31.2% from 33.2%. "This demonstrates the importance of forward-looking investment. Consider that today, Tencent is a roughly $410 billion company, and though Naspers has sold off some of its holdings in the company over the years, it … Tencent blamed that on mobile gaming revenue growth that slowed on a sequential basis, reported CNBC. "The year of 2017 was really a stellar year for Tencent. Investment from actively managed European, growth and technology funds is expected to top that, Naspers CEO Bob van Dijk said in a. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Most stock quote data provided by BATS. Therefore, for the year 2018, we are planning to step up our investment in a number of key areas." Even when Tencent is excluded, Naspers has delivered returns of more than 20% a year, considerably outperforming most equity markets, said Ruan Stander, a portfolio manager at Cape Town-based asset manager, Allan Gray. Pink sheets refer to a listing service for stocks that trade over-the-counter (OTC). The listing by South African media conglomerate Naspers of assets including part of its Tencent stake via the new Prosus vehicle in Amsterdam in September was heralded as a way to reduce the deep discount to net asset value (NAV) at which Naspers shares trade. Chinese tech giant could buy stake in Universal Music Group, Zoom's founder says he 'let down' customers. Now, Tencent’s market cap is $660bn in round numbers. It noted that Tencent understands and supports the sale. Factset: FactSet Research Systems Inc.2018. Naspers wound up selling 22 million Prosus shares, which amounted to 1.4% of Prosus' free-float, bringing Naspers' share of the company down from roughly 73.8% to 72.5%. Analysts are predicting that its stake, currently valued at R2.2 trillion, could be worth R600 billion more in a year's time. BATX stocks refer to the stocks of four of the Chinese technology giants: Baidu, Alibaba, Tencent, and Xiaomi. Naspers has long been trying to close a discount between its stock price and that of its underlying assets, including an around 30% stake in Chinese internet giant Tencent Holdings . Naspers Limited (NPSNY), the South African internet and media company, is selling $10.6 billion of its Tencent Holdings (TCEHY) stock, equal to about 2 percent of the total outstanding shares. ), Investopedia uses cookies to provide you with a great user experience. Naspers paid just $32 million back in 2001 for its stake in Tencent. On the one hand, the performance of Tencent has been incredibly successful – more so then anyone could have imagine. The Tencent stake has been worth more than Naspers itself for years, and dominated the $103 billion group's finances. An effective 22 % of Tencent ( 72 % of Tencent has been incredibly successful – more then. 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