Coverage initiated is when a brokerage or analyst issues their first rating on a particular stock, and is especially relevant after a company has gone public. "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 year of 2017 was really a stellar year for Tencent. London (CNN Business)Europe has a new tech giant. Much of Naspers’ growth … Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. The Tencent stake has been worth more than Naspers itself for years, and dominated the $103 billion group's finances. That forced investors to sell Naspers' shares so they weren't overly exposed to a single stock. The deal also carries some risk for Naspers. – Naspers said on March 23 it had raised $9.8 billion from the sale of a 2% stake in Tencent … -10.50 -1.68% Naspers Ltd. plans to carve out its internet businesses, including a $133-billion stake in China’s Tencent Holdings Ltd. that has long … Naspers Limited is a multinational consumer Internet company headquartered in South Africa. On Jan. 21, Naspers proposed selling more Prosus shares to institutional investors in Europe, and closed the sale the very next day. It should become clearer to investors how its other bets are performing, which could determine whether the discount on the stock narrows further. Naspers holds 72% of Prosus and Prosus owns 31% of Tencent. Called Prosus, the company was worth €95 billion ($105 billion) at listing, making it the biggest consumer tech stock in Europe and the second biggest tech company in the region behind German software group. By using Investopedia, you accept our. Naspers spun off most of its internet assets into Prosus just over a year ago in part to resolve the problem, but the move has made little difference. ), Investopedia uses cookies to provide you with a great user experience. Prosus shares soared 26% by the close, boosting its market value to €120 billion ($132 billion). Therefore, Naspers holds an effective 22% of Tencent (72% x 31%). Investment from actively managed European, growth and technology funds is expected to top that, Naspers CEO Bob van Dijk said in a. NPSNY 1 Month Total Returns (Daily) Chart Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. The simplest way to prove the point is to look at the value of Naspers’ indirect stake in Chinese consumer media giant Tencent. (See more: China to Woo Foreign-Listed Tech Giants Back Home. All rights reserved. The value of the stake in Tencent was $175 billion in March, when Naspers raised nearly $10 billion by selling it down from 33% to 31%. ”In reporting quarterly results, Tencent said it plans to increase its investments in video, payments and artificial intelligence. Tencent, which owns the WeChat messaging platform and a host of payment apps and mobile games, is one of China's largest technology groups. Emerging markets media giant Naspers has raised $9.8-billion by selling a 2% stake in Chinese messaging behemoth Tencent, which has lost $51-billion in value … 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. One motivation for spinning off Prosus is to narrow that value gap. Prosus also gives funds restricted to investing in European-listed companies the opportunity to get exposure to China's internet sector for the first time, Verster added. 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. All times are ET. Bernie Madoff is an American financier who ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time. Naspers paid $34 million for its original Tencent stake in 2001, and Tencent is now one of the world's most valuable companies. Even when Tencent is excluded, Naspers has delivered returns of more than 20% a year, considerably outperforming most equity markets, said Ruan Stander, a portfolio manager at Cape Town-based asset manager, Allan Gray. David Einhorn is a hedge fund manager known for his short selling strategy. Tencent, the Chinese company 31% owned by Naspers, has had a storming year, with the share advancing by 43.4%, valuing the company at … Naspers told the paper that it doesn’t plan on selling any more of its Tencent shares for at least three years. Naspers paid $34 million for its original Tencent stake in 2001, and Tencent is now one of the world’s most valuable companies. Chinese tech giant could buy stake in Universal Music Group, Zoom's founder says he 'let down' customers. Pink sheets refer to a listing service for stocks that trade over-the-counter (OTC). It accounted for 25% of the combined value of the 40 biggest companies on the Johannesburg Stock Exchange — up from 5% just five years ago. – Naspers is valued at a steep discount to the market value of its 31.2% stake in Tencent. The value of the Tencent stake still eclipses the value of the entire company. Tencent blamed that on mobile gaming revenue growth that slowed on a sequential basis, reported CNBC. 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