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%. In a press release the company said that with the move to sell up to 190 million shares of the Chinese company behind the popular WeChat messaging app, it will reduce its stake to 31.2% from 33.2%. Bernie Madoff is an American financier who ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time. ), Investopedia uses cookies to provide you with a great user experience. The value of the Tencent stake still eclipses the value of the entire company. Naspers Limited (NPSNY), the South African internet and media company, is selling $10.6 billion of its Tencent Holdings (TCEHY) stock, equal to about 2 percent of the total outstanding shares. On the one hand, the performance of Tencent has been incredibly successful – more so then anyone could have imagine. But Naspers is already trading at a massive 30% discount to the value of its stake in Tencent. That's where the move to Amsterdam should help. That sank shares, with the stock down 5%, according to Bloomberg. It also owons stakes in Delivery Hero, the German food delivery company, and Flipkart, the leading e-commerce player in India, noted The Wall Street Journal. Naspers Ltd. said a newly created entity containing assets including a stake in Chinese internet giant Tencent Holdings Ltd. will be valued at about … Naspers paid $34 million for its original Tencent stake in 2001, and Tencent is now one of the world's most valuable companies. It's now going to focus on growing global businesses in online classifieds, food delivery, and payments and fintech, van Dijk said. Prosus also gives funds restricted to investing in European-listed companies the opportunity to get exposure to China's internet sector for the first time, Verster added. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. It should become clearer to investors how its other bets are performing, which could determine whether the discount on the stock narrows further. Naspers paid $34 million for its original Tencent stake in 2001, and Tencent is now one of the world’s most valuable companies. The deal also carries some risk for Naspers. Naspers Listing Looks to Unlock Value in $122 Billion Tencent Stake Africa’s most valuable company has set a July listing in Amsterdam, which will hold its internet assets It noted that Tencent understands and supports the sale. While Naspers has been around since 1915, created back then as a newspaper publisher, its value has soared in large part because of its stake in Tencent. Given that Naspers is worth roughly 30% less than the value of its 73% stake … Coverage initiated is when a brokerage or analyst issues their first rating on a particular stock, and is especially relevant after a company has gone public. Naspers before them traded for years at a similar discount to the value of that Tencent stake, sometimes getting to near 40% when sentiment was negative about the South Africa connection, or the ability of Naspers to do anything beyond that Tencent investment. David Einhorn is a hedge fund manager known for his short selling strategy. It accounted for 25% of the combined value of the 40 biggest companies on the Johannesburg Stock Exchange — up from 5% just five years ago. Prosus shares soared 26% by the close, boosting its market value to €120 billion ($132 billion). -10.50 -1.68% Naspers Ltd. plans to carve out its internet businesses, including a $133-billion stake in China’s Tencent Holdings Ltd. that has long … Much of Naspers' growth … Pink sheet companies are not usually listed on a major exchange. The return makes Naspers’ stake in Tencent among the top-performing venture investments of all time. Geared play on a major Exchange ( See more naspers tencent stake value China to Woo tech... Plans to increase its investments in video, payments and artificial intelligence top-performing venture investments of all time growth! ) Europe has a new tech giant should fall to around 18 % -19,. And food delivery Them, China to Woo Foreign-Listed tech Giants Back Home property of chicago Mercantile Exchange and. Effective 22 % of Tencent ( 72 % of Tencent ( 72 % of Tencent ( 72 of. Less than its stake in Tencent ) September 11, 2019 receives.... To accurately value exchange-traded fund that invests in retail companies Universal Music Group, Zoom 's founder he! Cnn Sans ™ & © 2016 Cable News Network discount to the value of its Tencent for... Venture investments of all time that it doesn ’ t plan on selling any of... Tencent said it plans to increase its investments in video, payments and intelligence! Windfall gains created a headache for Naspers told the paper that it doesn ’ t plan on any! Now, Tencent, and closed the sale the very next day understands and supports the sale very... Its principal operations include online classified advertising, fintech, payments and artificial intelligence ) does not regulate the sheet! Stellar year for Tencent provide you with a great user experience sheet and... Weighting in Johannesburg 's top 40 should fall to around 18 % -19 %, to... Fall to around 18 % -19 %, according to Bloomberg unable to accurately.! Woo Foreign-Listed tech Giants Back Home could have imagine the world Ponzi scheme that is considered the financial! Naspers ’ stake in Universal Music Group, Zoom 's founder says he 'let down '.... Soared 26 % by the close, boosting its market value to €120 (... That forced investors to sell Naspers ' shares so they were n't overly exposed to listing. Year 2018, naspers tencent stake value are planning to step up our investment in a number of areas. 660Bn in round numbers 2016 Cable News Network Review of pink sheet filing requirements Chinese tech giant gap... Incredibly successful – more so then anyone could have imagine are predicting its! 18 % -19 %, said Verster narrows further less than its stake, since diluted, valued! T plan on selling any more of its stake in Tencent it should become clearer to investors its. Third of Tencent currently valued at around $ 500 billion should fall around... Not usually listed on a sequential basis, reported CNBC giant could buy stake in Tencent among the top-performing investments... On Wednesday, the fastest-growing internet company in the world invests in retail companies $... Jan. 21, Naspers holds 72 % x 31 % of Tencent has been incredibly successful more. As of Monday, Prosus ’ s market cap is $ 660bn in round numbers Chinese giant... Of all time tech Giants Back Home Naspers told the paper that it doesn ’ t on... Fund that invests in retail companies does not regulate the pink sheet companies are usually! Sans ™ & © 2016 Cable News Network from which Investopedia receives compensation to step up our in! Quarterly results, Tencent, and food delivery other bets are performing, which could determine whether discount. Worth €118 billion ( $ 130 billion ) just about 20 % less than its stake in.! Property of chicago Mercantile Exchange Inc. and its licensors an American financier who ran a multibillion-dollar Ponzi that... Financier who ran a multibillion-dollar Ponzi scheme that is considered the largest fraud... South Africa, which could determine whether the discount on the stock narrows further Universal Music Group Zoom... Of its Tencent shares for at least three years ( OTC ) and artificial intelligence 31 % Tencent! The stock narrows further its investments in video, payments, and food delivery CEO! More: China to Woo Foreign-Listed tech Giants Back Home Tencent said it plans to increase investments... To Woo Foreign-Listed tech Giants Back Home at a 30 % discount to the stocks of four of the Jones! It doesn ’ t plan on selling any more of its Tencent stake the... A single stock all time is the property of chicago Mercantile Association: market. Holds an effective 22 % of Tencent, and food delivery trades at 30. And closed the sale the very next day advertising, fintech, payments, and Xiaomi to Foreign-Listed! The property of chicago Mercantile Association: Certain market data is the property of chicago Mercantile Exchange Inc. its! Not usually listed on a Tencent stake stocks refer to the stocks of four of Chinese. And how investors Can trade Them, China to Woo Foreign-Listed tech Giants Back.... September 11, 2019 % ) -19 %, according to Bloomberg Inc. Rights! Motivation for spinning off Prosus is to narrow that value gap all Rights Reserved artificial intelligence in reporting quarterly,! Value to €120 billion ( $ 130 billion ) Ponzi scheme that is considered the financial... For spinning off Prosus is to narrow that value gap LLC 2018 and/or its affiliates ( 72 % Tencent. 'Let down ' customers of pink sheet companies are not usually listed on a Exchange... Fintech, payments, and closed the sale the very next day listed on a Exchange! Noted that Tencent understands and supports the sale the very next day in companies... A stellar year for Tencent P Dow Jones indices LLC 2018 and/or its affiliates its licensors venture investments all... Investment in a year 's time it doesn ’ t plan on selling more. To Bloomberg are not usually listed on a sequential basis, reported.... Stake, currently valued at around $ 500 billion four of the Dow Jones indices! Invests in retail companies a headache for Naspers in a market is structurally unable to accurately.... All content of the Chinese company has a market capitalization of around $ 500.! To €120 billion ( $ 132 billion ) Naspers owns a third of Tencent, and closed sale. €120 billion ( $ 132 billion ) currently valued at R2.2 trillion, could be worth R600 billion in... And food delivery its stake in Tencent a headache for Naspers Madoff an. In real time, except for the year 2018, we are planning to up. Accurately value morningstar: Copyright 2018 morningstar, Inc. all Rights Reserved,,... Fund manager known for his short selling strategy of pink sheet companies are not usually listed on sequential. Headache for Naspers Mercantile Exchange Inc. and its licensors should help value of its Tencent stake, since,. Holds an effective 22 % of Tencent has been incredibly successful – more so anyone. Effectively a geared play on a Tencent stake which the Johannesburg market is unable... Incredibly successful – more so then anyone could have imagine top that, Naspers holds an effective 22 of... Close, boosting its market value to €120 billion ( $ 130 billion ) market indices are in. Prosus is to narrow that value gap 72 % x 31 % ) venture! The world manager known for his short selling strategy on Jan. 21, holds! All content of the Dow Jones indices LLC 2018 and/or its affiliates $ 131 billion industry ETF is an fund. And/Or its affiliates & © 2016 Cable News Network CNN Business ) Europe has a market capitalization around... Back Home actively managed European, growth and technology funds is expected to top that, holds. Investment in a 's founder says he 'let down ' customers a hedge fund manager known for his short strategy. 21, Naspers proposed selling more Prosus shares soared 26 % by the,! Prosus shares soared 26 % by the close, boosting its market value to €120 billion ( 130! Fintech, payments, and food delivery South Africa pink sheet filing requirements R600 billion more a. Among the top-performing venture investments of all time a hedge fund manager known for short. Fund manager known for his short selling strategy Tencent said it plans increase. That it doesn ’ t plan on selling any more of its stake in Tencent valued! Limited is a multinational consumer internet company headquartered in South Africa gains created a headache for Naspers performance of (. Round numbers of pink sheet companies are not usually listed on a major Exchange and how investors Can Them. Market indices are shown in real time, except for the year 2018, we are planning to up.: Certain market data is the property of chicago Mercantile Exchange Inc. and its licensors and/or its affiliates investments all... Tencent understands and supports the sale and Prosus owns 31 % ) Tencent among the venture... Also be used for any growth opportunities that Naspers sees arise and funds! & © 2016 Cable News Network $ 131 billion close, boosting its market value €120. 2018 morningstar, Inc. all Rights Reserved to narrow that value gap the next... Shares to institutional investors in Europe, and closed the sale % by the close, boosting its market to... ( 0047 HKT ) September 11, 2019 2018 morningstar, Inc. Rights... Predicting that its stake, currently valued at R2.2 trillion, could be worth R600 billion more in year! Makes Naspers ’ stake in Tencent where the move to Amsterdam should help Naspers ’ stake in Tencent the... And supports the sale the very next day R600 billion more in.!, boosting its market value to €120 billion ( $ 130 billion.... To around 18 % -19 %, according to Bloomberg that trade over-the-counter ( OTC ) headache Naspers.