Alec Hogg: China’s strong-arming is bad news for Naspers

"Naspers/Prosus owns 31% of HK-based Tencent - a stake worth almost 150% of their market caps," writes BizNews founder Alec Hogg.
Published on

Having just returned from a short break in tropical Mpumalanga, I noticed citrus aplenty next to the national road, but never sighted a single avocado tree. Reading the Wall Street Journal's report below explains why: avos have become a magnet for criminal syndicates. With theft having become such a problem, business is also booming for a security firm whose bloodhound Stoffel (what else?) now tracks avo thieves rather than rhino poachers.

I've got an interview scheduled on Monday with Naspers/Prosus CEO Bob van Dijk. Its focus is to get his response to criticism from 36 asset managers who blame the Dutchman's financial engineering for an underperforming investment. They may be missing the point. Beijing's strong-arm tactics in Hong Kong are a serious risk to any business based in the former British territory. Naspers/Prosus owns 31% of HK-based Tencent – a stake worth almost 150% of their market caps. Three must-read pieces for Naspers shareholders on WSJ.com this morning:

Most direct is an article reporting how Beijing is accelerating its attack on HK-based internet firms, with Tencent very much in the crosshairs. As mentioned here over the past couple months, China wants to cut profitability – and thus power – of companies like Tencent and is using an anti-trust weapon to implement this. Click here.

___STEADY_PAYWALL___

Loading content, please wait...

Related Stories

No stories found.
BizNews
www.biznews.com