Naspers sells Prosus shares worth R24 billion


Naspers sells Prosus shares worth R24 billion

Published Date: 2020-01-23 | Source: Stephen Gunnion | Author: Stephen Gunnion

Naspers sells Prosus shares worth R24 billion

Naspers says increasing the Prosus free float will allow more investors to get exposure to the largest European consumer internet stock by value.

Naspers has sold down its stake in Prosus so it can grow the investor base of its European subsidiary. It will use the proceeds to buy back its own shares.

The media and internet group sold 22 million Prosus ordinary N shares at €67.50 each through an accelerated bookbuild to institutional investors. That resulted in gross proceeds of about €1.5 billion, or about R24 billion, for Naspers. The company now holds 72.5% of Prosus's ordinary shares, down from about 73.8%.

Since listing its international assets under Prosus on the Euronext Amsterdam exchange last September, Naspers said it had seen significant interest in Prosus from new investors, in particular European institutions and global technology investors. Prosus holds all the former Naspers operations and investments in online classifieds, food delivery, payments and fintech, etail, education, and social and internet platforms. At the time of the listing, Naspers said around $16 billion of value was unlocked for shareholders by reducing the discount to the combined net asset value of Prosus and Naspers.

Following the share sale, Naspers has agreed to a 90-day lock-up period with respect to its remaining N shares in Prosus. It said it would repatriate the proceeds to SA and use them to return capital to its own shareholders over time by repurchasing its own shares.

Naspers rose 0.6% to R2,486.35 yesterday while Prosus fell 3.4% to R1,099.91

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