Top Searches
- Gadgets Now
- News
- Tech News
- Prosus announces plans to buy shares in parent Naspers
Prosus announces plans to buy shares in parent Naspers
FacebookTwitterLinkedin
Prosus announces plans to buy shares in parent Naspers
Reuters / Updated: May 12, 2021, 02:39PM IST
FacebookTwitterLinkedin
Naspers, which has a controlling stake in Prosus and would retain control, hopes the deal will improve valuations for both companies.
Both trade at a discount to the value of the massive 28.9% stake that Prosus holds in Chinese software and gaming giant Tencent Holdings, worth 172 billion euros ($208.6 billion) at current market prices.
"The share offer we have announced today will extend Prosus's standing as Europe's largest internet company," said Bob van Dijk, CEO of both companies, in a statement.
He said Prosus shareholders would benefit as the Naspers N shares Prosus will buy trade at a deeper discount to the value of the Tencent stake than Prosus shares do. In recent weeks Naspers shares have traded at a discount of around 25% to the Tencent stake value, while Prosus trades at a 15% discount.
Naspers shareholders should see their share price trade more in line with the value of the Tencent stake, and Naspers will remain the largest company on the Johannesburg stock exchange, the companies said.
They said they expect the deal to be implemented in the third quarter of 2021.
The deal would increase Prosus's float on the Euronext stock exchange to around 60% from around 27% at present, making it eligible for inclusion among indexes of Europe's largest companies.
Follow Gadgets Now on Facebook and Twitter. For the latest news, tech news, breaking news headlines and live updates checkout Gadgetsnow.com
FacebookTwitterLinkedin
end of article