Prosus to Buy Back $5 Billion in Naspers, Own Shares to Narrow Valuation Gap
By Adria Calatayud
Prosus NV intends to buy back up to $5 billion worth of its own
shares and those of parent Naspers Ltd. to narrow a "sizeable" gap
between their market valuation and the net asset value of their
investments, Naspers said Friday.
Naspers, the South Africa-based investor that owns a major stake
in Chinese tech giant Tencent Holdings Ltd., said Prosus intends to
launch a program to repurchase up to $1.37 billion Prosus N shares
from its free-float shareholders.
Prosus, a Naspers spinoff that houses the group's international
investments and is listed in the Netherlands and South Africa, also
plans to implement an on-market share purchase program of N
ordinary shares in Naspers worth up to $3.63 billion, Naspers
Prosus intends to launch the proposed transaction after the
release of its results for the first half of fiscal 2021, which is
expected for Nov. 23.
Naspers said its board believes the share purchases by Prosus
represent a timely investment in the group's strong internet
portfolio and a sensible use of capital given valuations in the
consumer internet sector and the group's sizeable discount to net
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(END) Dow Jones Newswires
October 30, 2020 02:35 ET (06:35 GMT)
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