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.