The tax implications of corporate deals are normally not the most important thing. But because Naspers is such a huge company in SA terms, anything it does has massive implications. The decision to hive off a big chunk of the company, to be called Prosus, on to the Amsterdam stock exchange leaves shareholders with a tax dilemma.
The reason is that electing to take up shares in Prosus will trigger a capital gain. Alternatively, electing to take up further Naspers shares avoids triggering a capital gain, but investors may find this vehicle trades at a larger discount than it did before. Well, that’s great for them. But shareholders are going to be paying this, so they need to make a tough decision.
The Prosus option is the default option. This means that investors who do not take any action will automatically take up a direct holding in Prosus. Gresty says there are arguments that Naspers may trade at a larger discount to its net assets than it did before, partly because moving 27% of Naspers’s market capitalisation into Prosus will not reduce Naspers’s size in the SA market by enough to prevent its weight in the local index exceeding most investors’ single stock exposure limits.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BUSINESS MAVERICK: The fund management sector may lead us into the next global financial crisisIt’s been a decade since the last financial crisis and there are warning signs we might be heading for another one. It is a case of well-known financial institutions suddenly becoming cash-strapped and panicked clients yanking their capital at a whim. Sound familiar? But this time, it pertains to a different participant in the financial food chain. DURITZ79 This piece centres around a real issue... however, the headline is overly-dramatic and the argument weak. Do better
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Doubts over Deutsche Bank turnaround plan shake sharesDeutsche Bank shares extended losses on Tuesday on investor doubts that its chief executive can revive the lender by shrinking the investment bank and returning to its roots as banker to corporate Germany.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: London beats New York in attracting Saudi ETF billionsInvestors betting on Saudi Arabian shares are showing a clear preference for funds listed in Europe over the U.S. The contrasting picture may come down to which market offers lower fees and more attractive treatment on taxes and dividends.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK ANALYSIS: Lesson from Marikana: The other side of above-inflation pay risesMounting debt levels among mine workers are seen as a key factor behind sky-high wage demands and tensions on the Platinum Belt. Unpublished data regarding Lonmin presents a more nuanced picture. For several years before debt levels started spiking, Lonmin’s lowest-paid workers got above-inflation pay hikes, which rendered them able to consume on credit.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK ANALYSIS: Why Cyril Ramaphosa’s new ‘model city’ dream won’t workWhat does South African history tell us about the creation of new cities? The two poles are demarcated by Botshabelo and Richards Bay. The former failed and the latter worked. Why? Nothing ever works with you guys. Always and forever negative We don't need your negativity here..let the man try.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK: FIFA to pump millions into South Africa and kickstart amateur football economyA seismic change is about to take place in the funding of amateur soccer clubs by Fifa, and SA clubs need to make sure they are in a position to benefit. I believe they should start with pumping more money into female soccer development!!! Who is controlling the money? In my opinion keep it very far away from Danny Jordaan, also keep him far away from women.
Source: dailymaverick - 🏆 3. / 84 Read more »