BUSINESS MAVERICK: Naspers vows to press ahead with share swap, saying minority shareholder concerns are being addressed

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In a bid to reduce Naspers’ weighting on the JSE as well as narrow the discounts at which both Naspers and Prosus shares are trading relative to net asset value, management has proposed a convoluted but voluntary share swap arrangement. Some investors don’t like it, but management has vowed to press ahead. This means it will vote the 72.5% stake that Naspers holds in Prosus, in favour of the transaction.

In other cases, asset managers like Coronation and Allan Gray have opted to engage directly with the board to share their concerns and recommendations.“At the Prosus level, there is support for the transaction, particularly given the fact that a bigger free float is being created. On the Naspers side, there are concerns, which investors are wrapping their heads around, and which management is engaging with.

“This is not the case. My long-term financial health sits with Naspers,” says Van Dijk. “This was a misunderstanding that has been possible to clarify in conversations with shareholders.” “I realise this is complex, but we have explored every possible angle and I don’t know that it is possible to make the transaction less complicated and still make it achieve its objectives.”

When it comes to the transaction at hand, whether Naspers shareholders will be persuaded to swap their shares for Prosus shares, or Prosus shareholders to vote in favourWhat’s clear is that there is plenty more talking to be done.Zwelakhe Mnguni, CIO at Benguela Global Fund Managers. “

 

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