BUSINESS MAVERICK — INVESTMENT ANALYSIS: Naspers: to infinity and beyond

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BUSINESS MAVERICK — INVESTMENT ANALYSIS: Naspers: to infinity and beyond By Sasha Planting

Born and raised in Cape Town, but with internet investments across the emerging world, Naspers has always been proud of its JSE listing. However this listing has held it back for multiple reasons. One is simply the local nature of the JSE – some international funds are not mandated to invest in currencies outside of Euros, dollars or sterling. Another is simple visibility.

Naspers will join global technology firms like Philips and ASML, which provides lithography systems to chipmakers like Intel and Samsung. In the internet space, Dutch payment processor Adyen, which listed in June 2018 and doubled its price on listing, is arguably the most prominent. Adyen provides services to Netflix, Facebook and Uber and replaced PayPal as the main payment processor on Ebay.

An interesting aspect of the announcement is that Naspers will remain listed on the JSE and post the listing will own around 73% of the Amsterdam listed NewCo, along with the South African assets of Media24, Takealot, and some other small internet investments. Naspers’ rival , the giant Schibsted Media Group has done the same thing. Like Naspers, the Norwegian business was a traditional media company that progressed into online marketplaces and digital media.

 

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