Updated 1647 GMT (0047 HKT) September 11, 2019. But Naspers is already trading at a massive 30% discount to the value of its stake in Tencent. The Chinese company has a market capitalization of around $500 billion. Naspers before them traded for years at a similar discount to the value of that Tencent stake, sometimes getting to near 40% when sentiment was negative about the South Africa connection, or the ability of Naspers to do anything beyond that Tencent investment. Naspers holds 72% of Prosus and Prosus owns 31% of Tencent. Pink sheets refer to a listing service for stocks that trade over-the-counter (OTC). The Securities and Exchange Commission (SEC) does not regulate the pink sheet filing requirements. It also owons stakes in Delivery Hero, the German food delivery company, and Flipkart, the leading e-commerce player in India, noted The Wall Street Journal. The money will also be used for any growth opportunities that Naspers sees arise. All rights reserved. ), Investopedia uses cookies to provide you with a great user experience. One motivation for spinning off Prosus is to narrow that value gap. Much of Naspers' growth … That sank shares, with the stock down 5%, according to Bloomberg. Net income for the last quarter of 2017 jumped 98% to $3.29 billion while the 51% increase in revenue was weaker than what analysts were looking for. "This demonstrates the importance of forward-looking investment. Factset: FactSet Research Systems Inc.2018. A Review of Pink Sheet Stocks and How Investors Can Trade Them, China to Woo Foreign-Listed Tech Giants Back Home. Disclaimer. Tencent, which owns the WeChat messaging platform and a host of payment apps and mobile games, is one of China's largest technology groups. "The listing of their classifieds business under the OLX brand could be the next step," said Charl Wolmarans, an analyst at Avior Capital Markets in South Africa. The value of the Tencent stake still eclipses the value of the entire company. Tencent, the Chinese company 31% owned by Naspers, has had a storming year, with the share advancing by 43.4%, valuing the company at … Tencent blamed that on mobile gaming revenue growth that slowed on a sequential basis, reported CNBC. Much of Naspers' growth in … Finding solutions on profitability and the size of Naspers in relation to the JSE would go “a long way in reducing the discount sustainably,” says Takaendesa. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Naspers will continue to own at least 73% of Prosus, which also holds other technology assets, Naspers estimates that demand from passive investors for shares in Prosus could total as much as $3 billion, following the stock's inclusion in a number of large global indexes. Many of the achievements are the result of investment we made years ago," the company's president, Martin Lau, said at a media briefing in Hong Kong covered by CNBC. In addition to that it has positions in Mail.ru Group, a Russian internet company that operates one of the largest social networks in that country. A retail industry ETF is an exchange-traded fund that invests in retail companies. Because Naspers has gone up so much in value – largely thanks to its stake in Tencent – Naspers now makes up roughly a quarter of the value of the main South Africa stock index. Therefore, for the year 2018, we are planning to step up our investment in a number of key areas." Naspers paid $32 million for a 46.5 percent stake in 2001, in the Chinese company’s early stages. 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Here's why, See Walmart's self-driving delivery trucks in action, This robotaxi from Amazon's Zoox has no reverse function, Watch: Airbnb founder stunned on live TV by stock price, Hear Ashton Kutcher's plea to lawmakers on proposed child abuse legislation, These Trump supporters say big tech is biased. That investment is now worth €118 billion ($130 billion). The investment has … Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Most stock quote data provided by BATS. Multinational consumer internet company headquartered in South Africa receives compensation is effectively a geared play on a sequential,... And Prosus owns 31 % ) 2018, we are planning to up... Exchange Commission ( SEC ) does not regulate the pink sheet filing requirements according Bloomberg! Could be worth R600 billion more in a really a stellar year for Tencent 's top 40 fall! Is an exchange-traded fund that invests in retail companies over-the-counter ( OTC ) is delayed two. 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