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Naspers, spin-off, Prosus seen temperatures as low as 25% of the market, to debut in Amsterdam

AMSTERDAM (Reuters) – Shares in the spin-off of its South African e-commerce group Naspers rose more than 25 percent in the market debut in Amsterdam on Wednesday.

Bob van Dijk, CEO of Naspers, and Prosus Group on the Amsterdam stock exchange, as the Prosus will begin trading on the Euronext stock exchange in Amsterdam, the Netherlands, 11 September, 2019. REUTERS/Piroschka van de Wouw

Prosus is Naspers’ global empire, from the consumer’s internet assets, is the jewel in the crown of a 31% stake in the Chinese tech titan Tencent.

There’s a lot more demand than is available, so that’s all right,” said the CEO of the Euronext stock exchange in Amsterdam, Maurice van Tilburg, the netherlands. “It’s going to be an interesting hour of trading after opening in the morning.”

Euronext would have given an indicative price of 58.70 euros per share, Prosus, which have a fair market value of 95.3 billion euros ($105 billion).

The shares have risen by up to 76 eur at the opening of the market at € 75 per 0719 GMT.

The spin-off in Amsterdam will mark the end of an era for Naspers as it looks to move beyond the legacy of former Chief Executive Koos Bekker’s far-sighted investment of only $34 million into Tencent in the start up in 2001, is one of the most lucrative bets in corporate history.

The stake in Tencent, the world’s largest video game company, as well as the home of China’s immensely popular WeChat social media platform, it is now worth $130 billion, and it has boosted Naspers, rapid growth rate, on the way to some of Africa’s most valuable publicly-traded company.

That would be Prosus, the third-biggest share on the Amsterdam stock exchange, after royal Dutch Shell and Unilever, and is Europe’s No. 2 tech company in Germany, is a SAP .

Europeans are still, however, overshadowed by the likes of Facebook and Amazon are to the United States of america.

The Tencent stake is worth more than a Naspers itself, for many years, and have dominated the $103 billion of the group’s finances. A statement of reasons for the spin out of Prosus is to narrow that gap.

The Prosus see the list of approximately one-quarter of Naspers’ value, moving to Amsterdam, the netherlands.

“We believe the Prosus is a new and attractive opportunity for a global tech investor is to have access to our unique portfolio of businesses on the internet, which provides a strong foundation for our future growth plans,” said Naspers CEO Bob van Dijk.

“The list is designed to give our weighting scheme on the Johannesburg Stock Exchange, which we believe will maximize shareholder value over time.”

Naspers will retain a 25% stake in the Prosus, with the other 25% is paid to Naspers ‘ shareholders and the free float.

(Image: European technology industry-market-cap here).

FOOD DELIVERY COMPANIES

Prosus has an interest in the fast-growing food supply, social media and payment companies in China, India, Brazil and Russia. [See Factbox: nL5N26118H]

In the food delivery sector, with ownership interests in the Delivery of the mighty, and Takeaway.com in Latin America, iFood, and India, Swiggy.

For the fiscal year that ended in March, 2019 at the latest, Prosus report a 15% increase in revenue to $2.65 billion, while its operating loss narrowed to $418 million from $615 million.

Prosus is good for Tencent’s game as well as an equity – method investments, which is $3.41 billion euros up to 2019) income before income taxes.

Prosus’ net gain ended up being $4.25 billion, due to a $1.6 million gain on the sale of a 10% interest in Flipkart for Walmart.

Slideshow (3 Images)

Jasper Jones, an analyst at the Dutch shareholder rights group VEB, said he welcomed the list of Prosus.

“We have to keep a fresh flow of blood it is a real business listing that operates in the new economy,” he said.

However, he was criticised Naspers, the decision to enforce a two-class share structure, a system in which the largest shareholders, additional voting rights in certain circumstances.

Reporting by Toby Sterling; Editing by Susan Fenton

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