Prosus to buy Naspers and Prosus shares

Naspers subsidiary to purchase $5 billion in shares as investment in group’s internet portfolio.

Naspers subsidiary Prosus has announced its plans to buy up to $5 billion in total of Naspers and Prosus shares.

The purchase of these shares is a significant investment in the group’s strong internet portfolio, the group said in a statement, adding that It is regarded as a good use of capital, given full market valuations evident in consumer internet M&A and the group’s sizeable consolidated discount to net-asset-value (NAV).

Chief executive officer of Prosus and Naspers, Bob van Dijk, indicated that they had found several large M&A opportunities in the sector to be fully priced and had stayed disciplined. “Utilising cash to own more of our current portfolio through a purchase of our own shares – when the discount to NAV is sizeable is a sensible use of capital,” he says.

Up to $5 billion in shares in Naspers and Prosus will be purchased on the open market on a pro-rata (72.5 percent/27.5 percent) basis in line with the economic stakes of both companies in the Prosus/Naspers asset base.

The group said the purchases will be funded from cash resources and Prosus intends not to vote the Naspers shares acquired. It is likely that the Naspers shares acquired will be held in treasury and will therefore be excluded from Naspers per share financial metrics.

Prosus intends to launch the purchase following the release of its results for the six months ended 30 September 2020. This is expected on 23 November 2020. 

in a statement the group said the purchase was a further step to crystallise value for shareholders, following earlier actions such as the unbundling of MultiChoice Group and the listing of Prosus on Euronext Amsterdam in 2019.