Naspers’s discount headache on its Tencent investment – Wall Street Journal

Tencent’s anchor shareholder Naspers has a curiously incomplete plan to manage the downside of its extraordinary early bet on the Chinese tech giant.
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It's not every day that a South African business gets 750 words in the Wall Street Journal. So this assessment of Naspers is already a must-read for those of us from Sunny SA. But the piece, which urges Naspers to go further than its proposed Prosus listing, also puts the country's relative size into perspective: the WSJ describes the group's SA online and magazine market-leading subsidiary Media24 as "tiny" – which it is, when viewed in the context of its other investments and businesses that are worth over $150bn. The graph directly below is also instructive. It shows the discount between the market capitalisation of Naspers and the value of its underlying assets. That discount now sits at 37%, making the soon-to-be spun off Prosus a very cheap way into Tencent. And a headache that the Naspers team have yet to properly address. – Alec Hogg 

One of the Best Investments in History Becomes a Headache

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