India, like SA, can be trigger-happy on red-tape. Just ask Amazon.
Just like SA, India also has an election this year. And the politicians are putting in place some dramatic regulations to try shore up their voter base.
Just like SA, India also has an election this year. And the politicians are putting in place some dramatic regulations to try shore up their voter base.
Naspers has put aside the proceeds of share sales in Chinese internet giant Tencent Holdings and India’s Flipkart to pay for new investments due to the abundance of opportunities in its preferred media and technology markets.
So what has this to do with the Naspers decision to cash in its Flipkart stake? Well, the only other major investor to sell out was SoftBank.
As Naspers accounts for over 20% of South African equity portfolios, some analysts have raised concerns that the national savings pot is too heavily exposed to a single company.
Naspers announced the sale of its 11.18% stake in Indian ecommerce company Flipkart, to US-based retailer Walmart for $2.2bn, representing an IRR of approximately 32%.
Since 2012, Naspers has injected a total of $600m into Flipkart. At the price proposed by Walmart, its stake will be worth $3.3bn. What was that about it being a one-trick Tencent pony?
At the current share price Naspers investors are today paying less than 60c for each $1 in value.
Naspers, frustrated that investors give it no credit for its investments other than a stake in Chinese Internet behemoth Tencent, is considering listing some businesses on the stock market to highlight their value.
Bob Van Dijk engineered the Naspers investment into Frankfurt listed Delivery Hero, generating a rapidfire R1.5bn profit for the group. He, too, is behind the hugely successful bet on India’s Flipkart.
The Biznews SA Champions portfolio is up 5 percent year to date inclusive of costs, lagging the JSE Top 40 which is up 11% exclusive costs.