SA investors being forced sellers of Naspers might explain why the discount has widened recently for Naspers, but what we find interesting is that Prosus has seen a similar widening in its discount and does not have the same problem. However, if Naspers was able to make up over 20% of the JSE at one point, it's difficult to understand why it wouldn't be allowed to rise to that weighting again.Still, it appears that fully closing the gaps separating Naspers, Prosus, and Tencent may take more patience on the part of Naspers investors.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.At the end of the day Thursday, Prosus was still higher than its listing price, though it has pulled back some, to a market capitalization of about $123 billion. Tencent's stock still hasn't recovered to those levels as of yet. You wouldn't think that selling shares may cause the price to go up, but there's a reason why it might. And the bigger Tencent got, the bigger the discount at which Naspers traded relative to the value of its Tencent stake alone. Obviously, it would be more beneficial for Naspers to sell Prosus shares at higher prices in the future.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.There may also be a shortage of shares for other institutional investors. Investors should know that if you owned Naspers … Most of these are still loss-making, according to annual results posted Friday. The rising discount is partly attributable to the stronger rand and investor concerns about probes into MultiChoice’s dealings with news channels ANN7 and the SABC, according to Imtiaz Suliman, portfolio manager at … In the absence of a big correction in the Tencent share price though, the commitments that Prosus management have made to take further steps to address this discount in the medium term suggest that we are at levels from which there should be good upside if management does indeed follow through. By making more shares available, it may actually boost Prosus' weighting in these indexes.Stock Advisor launched in February of 2002. As of February 10, the Naspers discount to NAV was 42.6%, at the upper end of its long-term historical range. Now that Prosus is tradable, it appears that investors are selling Naspers shares and buying Prosus. The Prosus discount to NAV was 33.3%.The listing by South African media conglomerate Naspers of assets including part of its Tencent stake via the new Prosus vehicle in Amsterdam in September was heralded as a way to reduce the deep discount to net asset value (NAV) at which Naspers shares trade.To date, however, that does indeed seem to be the plan.Prosus, he argues, is simply Naspers by another name.Get your free PDF: The 100 most influential Africans, 2019 editionComplete the form for your free download of The Africa Report’s 2019 list of the 100 most influential Africans. Investors should know that if you owned Naspers shares prior to the spinoff, you likely received only 26% of your stake in Prosus shares, with the remaining 74% of your stake still held in Naspers shares or ADRs.
Naspers wound up selling 22 million Prosus shares, which amounted to 1.4% of Prosus' free-float, bringing Naspers' share of the company down from roughly 73.8% to 72.5%. Following a c. 24% rally in the Tencent share price (Naspers owns a 31% stake of the Hong Kong-listed tech Group, which accounts for >80% of Naspers’ net asset value [NAV)]) from c. 4 December 2019 to Monday’s (13 January) close, we highlight what has happened to the Naspers and Prosus discount to NAV below. In the press release, Naspers claimed, "Naspers has seen significant interest in Prosus from new investors, in particular European institutions and global technology investors.
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