South Africa’s Naspers sets date for European listing

Vehicle will house Tencent stake and international internet businesses

South Africa’s Naspers said it aims to list assets that would rank as Europe’s most valuable consumer internet business on Amsterdam’s Euronext bourse in July.

Africa’s biggest company by market value intends to list the vehicle, which will house its 31 per cent stake in China’s Tencent as well as other international assets, on July 17, it said on Wednesday.

Johannesburg-listed Naspers plans to retain 73 per cent in the as-yet-unnamed vehicle, which will also include its stakes in Russia’s Mail.ru and India’s Swiggy among other internet businesses, such as classifieds.

Naspers shareholders will have the option to receive the other 27 per cent of the new company, which will have a secondary Johannesburg listing, or to receive more Naspers shares. Naspers will hold a shareholder meeting in June.

“What we’ re listing is a new global consumer internet group . . . we are convinced that it will maximise shareholder value over time,” Bob van Dijk, Naspers’ chief executive, said.

The listing is among measures Naspers is taking to reduce a significant discount in the valuation of its shares that is driven by the sheer size of its holding in Tencent, which Naspers acquired in 2001.

Naspers’ market capitalisation of around $95bn is dwarfed by the valuation of the Tencent investment, at about $120bn.

As Tencent’s stock has risen, South African institutional investors in particular have had to sell their Naspers shares as the company’s value expanded to represent a quarter of Johannesburg’s stock market.

Naspers sold $10bn of its Tencent shares last year and has also listed its African pay-tv arm Multichoice in Johannesburg.

Shareholders “are happy that we’re reducing some of the concentration risk,” Mr van Dijk said.

The listing is also expected to attract global tech investors as well as Europe-focused funds coming to Naspers for the first time.