Close the gap! Naspers needs some nifty footwork
It’s got a job on its hands to halt the growing divergence between its market value and that of its underlying assets
The management at Naspers and its Amsterdam-listed subsidiary Prosus have a big job on their hands trying to close the growing gap between their market value and that of their underlying assets.
Even as Tencent’s shares have rallied unexpectedly in recent months, its largest shareholder, Prosus, has not felt the full benefit with the discount at which it trades increasing over the same period.
For JSE-listed Naspers and Prosus a trading discount means their market capitalisations are lower than the sum of their asset bases, of which Tencent makes up a large part. In September, Prosus was trading at a discount of about 20% with Naspers at about 35%...