Finweek English Edition - - SIMON SAYS -

The Niveus trad­ing up­date was eye-wa­ter­ing with HEPS ex­pected to be some 140%-160% higher. The is­sue is that there has to be some ac­count­ing tricks in those num­bers. Niveus op­er­ates in the fairly sta­ble gaming space and that’s cer­tainly not where the more than dou­bling of profit comes from. More than likely it is a revalu­ing of its 57.13% stake in KWV, that be­ing pa­per profit and not real cash. The big­ger ques­tion is around what will hap­pen with KWV – will we ever see it list­ing on the JSE and will Niveus un­bun­dle it to share­hold­ers? Growthpoint both have mar­kets caps of just above R60bn and they’re the 33rd and 34th largest stocks on the JSE re­spec­tively and com­fort­ably in the Top 40. Now, by the time you read this, who knows what would have hap­pened to the Naspers share price, but adding the equiv­a­lent of a Top 40 stock to your mar­ket cap in one day is al­ways go­ing to be im­pres­sive. *The writer holds shares in Naspers, Sho­prite and Wool­worths. ** Fin­week is a pub­li­ca­tion of Me­dia24, a sub­sidiary of Naspers.

Green Point Sta­dium, Cape Town.

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