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].
The UK Has Agreed to a Post-Brexit Trade Deal with South Africa and Other Countries
Britain has agreed a deal with six southern African countries including South Africa, the continent’s most developed economy, that will ensure continuity of trade conditions after Brexit, the British High Commission in South Africa said on Wednesday.
Political turmoil in the United Kingdom has generated uncertainty over how, when and even if the country will withdraw from the European Union. Its current exit date is set for October 31.
But while the situation has left the future trade relationship between Britain and the EU in doubt, London has been working to minimise the impact of Brexit on other trading partners.
Britain initialled an Economic Partnership Agreement with the Southern African Customs Union (Sacu) – comprising South Africa, Botswana, Lesotho, Namibia, and eSwatini (formerly known as Swaziland) – and Mozambique on Tuesday.
“This trade agreement, once it is signed and takes effect, will allow businesses to keep trading after Brexit without any additional barriers,” Britain’s International Trade Secretary Liz Truss said in a statement.
The agreement is still subject to final checks. But once signed formally, it will mirror the trade conditions the southern African nations currently enjoy with the EU.
Trade between Britain and the six countries was worth 9.7 billion pounds ($12 billion) last year, with machinery and motor vehicles topping British exports to the region. The UK meanwhile imported some 547 million pounds worth of edible fruit and nuts.
Britain has already signed trade continuity agreements with countries accounting for 89 billion pounds of its external trade.
Prime Minister Boris Johnson says Britain must leave the EU on October 31, but parliament has passed a law compelling him to ask Brussels to delay Brexit until 2020 unless he can strike a divorce deal. Johnson says he will not request an extension.
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: Adrian Pingstone [1], [2].
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].
Nigeria to Repatriate 600 Citizens from South Africa, in the Midst of Xenophobic Violence in SA
Nigeria will repatriate about 600 citizens from South Africa this week following a wave of xenophobic violence that caused tensions between the countries, a Nigerian diplomat said Monday.
South Africa’s financial capital Johannesburg and surrounding areas were rocked by a surge of deadly attacks against foreigners this week, many directed against Nigerian-owned businesses and properties.
“They are about 600 now” due to be flown back, Godwin Adamu, Nigerian Consul General in Johannesburg, told AFP.
Nigerian airline “Air Peace is beginning the airlift by Wednesday, the first flight with 320 Nigerians,” he said. “We will have another one immediately after that.”
At least 12 people were killed in the violence and hundreds of shops destroyed.
Foreign workers are often victims of anti-immigrant sentiment in South Africa – the continent’s second biggest economy after Nigeria – where they compete against locals for jobs, particularly in low-skilled industries.
Update: 12 September 2019
A flight from Johannesburg to Lagos that was arranged to evacuate Nigerians who fear xenophobic attacks in SA was delayed on 11 September, because of problems experienced at check-in.
Prince Ben Okoli, president of the Nigerian Citizens Association SA, said the chartered flight by Nigerian airline Air Peace was due to leave with the first batch of Nigerians at 9.10am on Wednesday.
“However, a number of people were singled out by immigration as they were about to board the flight. This led to a delay in the flight leaving SA. The Nigerian foreign affairs ministry said on Wednesday that 649 Nigerian nationals had registered with Nigerian missions in SA for the free flight offer.
Okoli said the consulate-general had promised to issue travel documents free of charge to those who were without valid documents after they had been authenticated by Nigerian authorities to be from that country.
He said that following the maiden flight out of Johannesburg, other flights would be arranged to take “in distress” Nigerians out of SA.
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: Anna Zvereva [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].