Naspers chief gets R196m share incentive to stay on

NASPERS chief executive Bob van Dijk has been given an option to buy R196 million in shares at a fixed price of R3 207 a share, the closing price on June 25, over a period of four years.

The move is seen as an incentive to keep Van Dijk as the chief executive of the group, which has a market capitalisation of about R1.5 trillion.

Van Dijk can buy the stock in four instalments from June 2019 to June 2022, regardless of the share price on those dates.

Naspers shares closed 0.2 percent lower on the JSE yesterday, at R3 408 a share, compared with Tuesday’s closing price of R3 415 a share.

Revenues

In the results for the year to the end of March, the group reported a 38 percent increase year-on-year in revenues, measured on an economic interest basis, including the proportionate contribution from associates and joint ventures, to $20.1 billion (R275.98bn).

Core headline earnings grew 72 percent to $2.5bn.

The group said businesses outside South Africa contributed 84 percent of revenue, compared with 80 percent last year.

Naspers chairperson Koos Bekker said during the results presentation that the group had made good progress during the year.

“Financial performance was strong. Growth in both revenue and trading profit accelerated. We benefited from scale effects in e-commerce and a positive contribution from Tencent. Video entertainment’s results were steady,” Bekker said.

In the year ahead, the group said it would use its strong balance sheet to accelerate the growth of its classifieds, food delivery and financial technology businesses globally.

Naspers operates in more than 120 countries and markets, resulting in significant exposure to foreign exchange volatility.

The group is also the owner of Africa’s biggest pay-TV provider, and it has a number of investments in internet and technology stocks around the world.