Naspers Has Officially Listed Europe’s Biggest Consumer Internet Firm on the Euronext Exchange in Amsterdam

South African e-commerce group Naspers is listing its global empire of consumer internet assets under the name of Prosus on Wednesday – and the jewel in the crown is a 31% stake in Chinese tech titan Tencent.

The spin-off in Amsterdam marks the end of an era for Naspers as it looks to move beyond the legacy of former Chief Executive Koos Bekker’s prescient investment of just $34 million in Tencent when it was a startup in 2001, one of the most lucrative bets in corporate history.

The stake in Tencent, the world’s biggest video game company and home to the hugely popular WeChat social media platform, is now worth $130 billion and has buttressed Naspers’ rapid growth towards becoming Africa’s most valuable listed company.

In a statement, the Euronext stock exchange gave an indicative price of 58.70 euros per share for Prosus, implying a market value of 95.3 billion euros ($105 billion) in one go.

That would make it the third-largest stock on the Amsterdam exchange after Shell and Unilever, and Europe’s No.2 tech firm after Germany’s SAP.

European players are still, however, dwarfed by the likes of Facebook and Amazon in the United States.

The indicative price is based on Naspers’ closing price in Johannesburg, with trading in Prosus set to start on Wednesday morning in Amsterdam.

The Tencent stake has been worth more than Naspers itself for years, and dominated the $103 billion group’s finances. One motivation for spinning off Prosus is to narrow that value gap.

One reason for the discount is Naspers’ heavy weighting on the Johannesburg Stock Exchange.

The stock currently represents around a quarter of the value of the shareholder-weighted top 40 index, which makes it difficult for index investors attempting to limit their exposure to a single share.

The Prosus listing should see about a quarter of Naspers’ value move to Amsterdam.

“We believe Prosus will present a new and attractive opportunity for global tech investors to access our unique portfolio of internet businesses, providing a strong foundation for our future growth plans,” said CEO Bob van Dijk.

“The listing is also designed to reduce our weighting on the Johannesburg Stock Exchange, which we believe will maximize shareholder value over time.”

Naspers will retain a stake of about 25% in Prosus, with the other 25% distributed to Naspers shareholders and making up the free float.

Interior of Euronext Amsterdam.

Food delivery firms

Prosus also has stakes in fast-growing food delivery, social media, and payments companies in China, India, Brazil and Russia. See Factbox:

In the food and delivery sector, it owns stakes in Delivery Hero, Takeaway.com, Latin America’s iFood, and India’s Swiggy.

For the fiscal year ended in March 2019, Prosus posted a 15% rise in revenue to $2.65 billion, and its operating loss narrowed to $418 million from $615 million.

Prosus accounts for its Tencent stake as an “equity accounted investment”, which added $3.41 billion euros to 2019 pre-tax profit.

Prosus’ net profit ended up being $4.25 billion, thanks to a $1.6 billion windfall on its sale of a 10% stake in Flipkart to Walmart.

Jasper Jansen, an analyst at the Dutch shareholders rights group VEB, said he applauded the arrival of Prosus.

“We love the fresh blood – finally there’s a real company listing here that’s active in the new economy,” he said.

However, he criticized Naspers’ decision to maintain a two-class share structure system which gives its biggest shareholders extra voting rights in some circumstances.

Reporting by Toby Sterling; Editing by Pravin Char and Jan Harvey.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Zandcee [1], [2].

Cape Town Marathon and Other Runs to Take Place on 14 and 15 September

On Sunday, 15 September, the Sanlam Cape Town Marathon will take place in the Mother City, with more than 26 000 local and international runners taking part in an event that’s fast becoming known as Africa’s “must-run” city marathon.

Olympic long-distance runner Elana van Zyl-Meyer, ambassador for the marathon, knows from personal experience what goes into preparation for an undertaking of this kind, and how important spectators are on the big day. “A marathon is a long personal journey. For some of us it takes sheer will and guts, while for others it’s a relative breeze. But either way, there’s nothing more energising and comforting than when you see a group of supporters cheer you on from the sidelines – it’s pure joy.”

The Sanlam Cape Town Marathon is Africa’s only IAAF Gold Label-status city marathon, meaning that the International Association of Athletics Federations designates it as one of the leading road races in the world. This year the organisers are pulling out all the stops to make sidelines magic, which is not only a prerequisite for the event to better its IAAF classification to Platinum, but also a reason for locals to come out and cheer on the athletes in Cape Town’s stunning springtime weather. Spectator zones have been set up along the 42.2km marathon route, giving supporters frontline views of the course action as well as an opportunity to enjoy live music and dance, and suppo. Some of the zones are co-hosted by local charities involved with this year’s event.

The zones can be found at Sea Point Swimming Pool (4km mark); City Hall and the Grand Parade (13.8km); Victoria Road in Woodstock (16.5km); Pick n Pay Centre in Main Road, Observatory (18.7km); Rondebosch Main Road (20.8km); at the entrance to Groote Schuur on Newlands Main Road (21.1km); Newlands swimming pool arena (22.4km); opposite Newlands Cricket Grounds (23.4km); Campground Road/Sandown Road (25.7km); Rondebosch Common at Park Road (28.5km); Rondebosch Common opposite the Red Cross Children’s Hospital (29.7km); Rondebosch Common near Rustenburg Girls’ High School (30.8km); Liesbeek Parkway at Durban Road (32.6km); Liesbeek Parkway opposite Hartleyvale Stadium (33.7km); Salt River Circle and the Biscuit Mill (36km); the Good Hope Centre on Strand Street (38.7km); the Prestwich Museum area on Bree Street (40km); the Fan Walk on Somerset Road (41km); and Vlei Road in Green Point (finish).

“Typically of big-city marathons around the world, some supporters get dressed up in crazy outfits to spur on family members or friends who’re running. Catching attention is the aim, and it works!” says Van Zyl-Meyer.

This year Sanlam has upped the prize values of its highly popular Gees Competition, which debuted at last year’s event. With a chance to win a share of R250 000, individual supporters, club members and charities are challenged to take part by dressing up, downloading an official fan bib from the marathon page on Sanlam’s website and wearing it as a bib on race day, then taking a selfie and sharing it to Facebook, Instagram or Twitter using #SCTMgees and tagging @ctmarathon. Winners are chosen at the end of the marathon weekend, with clubs and charities in line for cash prizes ranging from R5 000 to R50 000, and 20 spot prizes of R2 000 each for individuals.

The marathon is fast becoming a platform to bring attention to various social issues affecting communities in and around Cape Town. This year, over 50 charities will be represented and involved in the event, with many runners dressed in outfits appropriate for shining a light on a cause and charity about which they’re deeply passionate. For example, the five-runner sausage-dog suit will once again be featured for the Cape of Good Hope SPCA; sports academy Endurocad will feature runners dressed as comic-book superheroes; and participants with sapling trees strapped to their backs will be bringing attention to the Township Farmers’ #runninggreen campaign.

“Cumulatively, we hope to raise in excess of R3 million for charities across the Western Cape,” says Van Zyl-Meyer. “We’re a nation of doers and supporters, and I absolutely believe we can do it.”

The event will be televised live on SABC2 from 06h30 and will be live-streamed on the marathon website www.capetownmarathon.com

There will also be 5km, 12km, and 22km runs taking place on 14 September. To find out more about the marathon and other runs, click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

How Many Skilled Professionals Are Leaving South Africa Every Day?

There has been a major increase in skilled professionals leaving the country as South Africa faces continued uncertainty.

Speaking to eNCA, Sable International’s Andrew Rissik said that people are leaving for many reasons – with two of the biggest reasons being economic uncertainty and crime.

“We are looking at around 25,000 skilled people leaving South Africa each year, with around 1,000 – 2,000 of these people also being very wealthy people who are able to buy their way into other countries.

“These are potentially very high-quality taxpayers that South Africa is losing,” said Rissik.

This averages out to around 68 skilled people, and between two and five ultra-wealthy South Africans, leaving the country every day.

“What we see is that a lot of people with young children tend to start getting pulled back to South Africa because of family links.

“Although we have seen this (trend) slow compared to the past decade because of the economic situation in South Africa as we know it – it’s really pretty negative at the moment.”

Rissik added that as long as these ‘push factors’ are present, people will continue to leave.

Popular destinations

The Department of Home Affairs does not keep record of South Africans who emigrate permanently; however, receiver countries do keep track of immigrants, which gives an indication of how many people are actually leaving.

This data shows that the UK is still the most popular choice for South African immigrants, while a growing number are also choosing to settle in Australia and New Zealand.

  1. New Zealand: The latest data from Stats NZ shows that there has been a sharp rise in South African migrants, with 8,200 people moving to the country between April 2018 and April 2019;
  2. Australia: The latest immigration data from Australia shows that a total of 5,397 South Africans moved in 2016/17 time period and 2,907 South Africans over the 2017/2018 period;
  3. UK: At the beginning of January, statistics provided to City Press by UK’s Office for National Statistics showed that approximately 7,300 people emigrated from South Africa to the UK in 2017

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Ross Parmly [1], [2].

SA Students Vie for R15m Business Start-up Prize

A group of SA students is hoping to bag a R15m capital injection from the UK where they are participating in the Hult Prize Accelerator programme.

The four students – Nobuhle Ndebele, 24, Lindokuhle Nene, 25, Reitumetse Nkhahle, 26, and Gauta Matlou, 29 – all PhD chemistry students at Rhodes University in Makhanda (formerly Grahamstown) – are on a quest to win a $1m (R14.7m) cash prize to fund their start-up company.

They will spend eight weeks in the UK preparing for the final pitch competition where the best business idea will win.

The Hult Prize challenges innovative university and college students from across the world to a social entrepreneurship start-up that will create 10,000-plus meaningful jobs in the next decade.

The four, known as Team E-Smart, won the regional Hult Prize at Brookhouse International School in Nairobi, Kenya, with their business model to develop an idea to provide meaningful work for young people within the next decade.

Rhodes University chemistry PhD students Gauta Matlou, Nobuhle Ndebele, Reitumetse Nkhahle, and Lindokuhle Nene.

Their idea is to create job opportunities for the youth through the collection of electronics and electrical waste materials for further recycling, repairing or re-purposing into new market products.

Speaking on behalf of Team E-Smart, Matlou said they had been introduced to influential people.

“We are excited that we have made it this far in the programme. The real work has just started and we have already been assigned with our own mentor Ryan Reigg.

“At the moment our challenge is achieving or sealing business partnerships into our business. We need to get partners who will be willing to buy our products in the future.

“That will show the judges that we will be able to run and m aintain this business should we get the prize,” he said.

“There are currently 39 teams from across the world. Ours now is to fight for the top- six position by improving our business model and demonstrate to the judges how we will create 10,000 meaningful jobs for the disconnected youth in our E-waste business. We need to impress the mentors, experts and judges.”

According to Team E-Smart, SA produces about 316,000 tons of electronic waste and only 12% is collected and recycled, which is then exported to other countries.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

All-woman Panel to Select Seedstars Nairobi Winner From 10 Kenyan Startups

Seedstars World, one of the world’s largest startup competitions, has selected 10 Kenyan startups to pitch at Seedstars Nairobi this Friday (28 June).

The sixth edition of Seedstars Nairobi will be hosted by Nailab and the 10 will appear — for the first time in a Seedstars pitch — in front of an all-women judging panel.

Seedstars said this year’s pitching competition will be a closed-door event, and will also for the first time have an all women jury panel to select the most promising startup.

Seedstars regional manager for Africa Claudia Makadristo explained in a statement today that it is part of the competition’s efforts to increase women participation on all levels, including for its mentors, experts, startups and jury (see this story and this Q&A for more).

“We are extremely excited to work with this jury panel on selecting the most promising startup in Nairobi and we believe that the closed-door event format will allow us to ask some more sensitive and in-depth questions to the entrepreneurs,” said Makadristo.

The jury consists of Makadristo as well as Financial Sector Deepening Africa Investments CIO Anne-Marie Chidzero, East Africa Private Equity and Venture Capital Association executive director Eva Warigia, AHL Venture Partners portfolio manager Tsakane Ngoepe, Zephyr Acorn investment consultant Wanjiru Chabeda and LGT Impact associate director Winnie Ibuyako.

The startup that wins the event will receive an all-inclusive trip to represent Kenya at the Seedstars Africa Summit.

In addition the Seedstars Nairobi winner will also be in the standing to win a spot at the Seedstars Global Summit in Switzerland where the winner will take home a $500 000 investment prize, as well as three months access to an investment readiness programme.

Angel investor meetup

Seedstars also announced that prior to the event it will, in collaboration with the African Business Angel Network (Aban), host a four-hour long angel investor meetup.

The event, it said, will be a unique opportunity for investors to network, gain key insights, knowledge, as well as access to Seedstars and ABAN deal flow.

The 10 startups selected to pitch at the event operate in the fintech, medtech, agritech, logistics and blockchain verticals. They are:

  1. Ilara Health: Ilara Health makes common diagnostics accessible and affordable to the 500 million people in Africa who today struggle to access even basic blood tests.
  2. Julla: Julla is a point of sale financing company that enables users to purchase items now and pay later.
  3. Lentera: Lentera combines data from ground sensors, drone imaging and satellite imaging to provide actionable insights to help farmers increase their yield and reduce the cost of fertiliser and pesticides.
  4. Nurse-In-Hand: Nurse-in-Hand partners with county governments to offer first responder and home-based care services to geriatrics and pregnant mothers in Kenya.
  5. Pesabase: Pesabase is set of remittance, payment and banking solutions that use the blockchain to provide financial simplification and inclusion in Africa.
  6. Pezesha: Pezesha is a digital financial marketplace that facilitates credit scoring and affordable credit for the un-banked by connecting them with lenders.
  7. Shamba Records: Shamba Records is a distributed ledger that runs on Blockchain and uses big data and artificial intelligence to collect farm records. This digitised system can be used to track, identify and verify their harvest.
  8. Smatbeba: Smatbeba has developed a cargo hailing application and web-interface that links cargo owners to delivery vehicles.
  9. WorkPay: Workpay is an employee management and payment solution with features that include biometrics, automated salary payments to banks and mobile wallets.
  10. Tanda: This fintech startup aims to revolutionise access to goods and essential digital financial services for small businesses cross Africa. Tanda enables micro-retailers to not only access inventory on credit, but also become access points for essential services such as airtime, utility payments, mobile banking and insurance for their customers.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].