Posts

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 Refugee Center to Reopen in January 2020

The Cape Town refugee reception office, Scalabrini Centre, is expected to reopen in January 2020.

The centre was closed for almost seven years, which affected thousands of immigrants. It was due to reopen by March 2018, but the Department of Home Affairs missed the deadline. The Department of Public Works said due to budget constraints and high costs, it would lease a building in Bellville.

It was expected to cost just over R21 million for a leasing period of over five years. The Scalabrini Centre and the Legal Resources Centre took Home Affairs to court back in 2017. The Supreme Court of Appeal then ordered the department to open the office by March 2018.

The centre’s Miranda Madikane said she was pleased about the recent development. “We are feeling very happy that accommodation has been found.”

Madikane said without documentation, foreign nationals were unable to access basic services such as healthcare, education, employment and were afraid they would get arrested. “When you’re living without a document in South Africa, it’s extremely difficult and dangerous, and places massive pressure on people,” she said.

 

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].

A Warm Welcome to our Two New Team Members

We have recently added two new team members at our Head Office in Cape Town, South Africa. We would like to officially wish them both a warm welcome, and introduce them to you.

Lynn Mackenzie
Immigration Lead

Lynn has joined us as our Immigration Lead. As such, she will be heading up our Immigration division, and is responsible for

In January 2018, Lynn returned to Cape Town, her hometown, after spending 17 years studying and working in Los Angeles, California, USA. She received both her Bachelor of Arts Degree in Political Science and her Juris Doctor in Law from California institutions.

Whilst studying, Lynn worked as an executive assistant for a faith-based organisation, where she excelled in administratively managing the daily operations of the organisation. Upon graduation from law school in 2011, Lynn was motivated to pursue her interests in law and politics, and began working as a Legislative Analyst with the California Treatment Advocacy Foundation. There, she wrote policy recommendations to further legislative initiatives, required to be presented before the California Health Senate. She thoroughly enjoyed this position as it sharpened her skills and knowledge of the legal and legislative process.

In 2014, Lynn accepted a position as the Legal Services Advocate with the Interfaith Refugee and Immigration Service in Los Angeles. There, she managed various programs and worked tirelessly with the Immigration team to help clients file numerous immigration applications before the U.S. Citizenship and Immigration Service, and the US Department of State.

In 2019, Lynn completed her Master in Laws (LL.M) in Public Law, specializing in Human Rights Law, from the University of Cape Town. She was extremely motivated to resume her work within the immigration law space, and as such, joined Relocation Africa in June 2019.

Lynn is currently Immigration Lead for Relocation Africa, and is therefore responsible for the entire immigration product line for the African Region. She is also an avid fitness enthusiast, who believes that daily exercise is good for the mind, body, and soul.

She is happy to have returned to her country of birth and is looking forward to all that lays ahead, both personally and professionally.

 

Chantelle Butcher
Client Account Specialist

Chantelle has joined us as our newest Client Account Specialist. As part of our Mobility team, Chantelle is responsible for

Chantelle has in-depth knowledge of and experience in the hospitality and culinary industries. Completing a Hospitality Management Diploma at the Cape Town Hotel School in 2008 established the foundation for the enriched, decade-long journey through the industry. It is during this time that she completed her service intervals at the Cellars-Hohenort Hotel and the Mount Nelson Hotel. She obtained years of experience at 4- and 5-star properties in Cape Town.

Chantelle established her career as one of the members of the opening team for the Taj Hotel, Cape Town in 2009 – on the eve of the 2010 Soccer World Cup. With a wish to branch out overseas, she embarked on a yearlong journey on the 6-star Silver Seas cruise ship in 2012. The experience taught her the true value of hard work, patience, and international hospitality standard practices.

Arriving back in Cape Town in 2013, she returned back to her first love. She challenged herself to a career change, moving into the events industry. Working for Urbantonic as their Staffing Manager provided the opportunity to invest her years of experience by enriching and developing the skills and knowledge of South African youth looking to enter the exciting industry.

She joined the Relocation Africa Mobility team in July 2019, as a Client Account Specialist.

In her spare time, she enjoys keeping up-to-date with international current affairs, and meeting new people. Chantelle believes that enriching your life through other people’s experiences adds value to your journey.

 

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].

Team Member Profile: Our HR Manager, Joy Jackson

At our Head Office, we are constantly looking for ways to adjust our team members’ roles so that we can best match their strengths to their responsibilities. As part of some recent tweaks to our internal structure, Joy Jackson, who has been our Recruitment and Training Manager since 2013, has been appointed as Relocation Africa’s Human Resources Manager.

Joy’s History

Joy has completed a number of certifications, including Train the Trainer (Swiss School of Tourism & Hospitality) ; Service Culture Trainer (Italy, Florence); Excellent Service Delivery in the Mobility Context (MIM – Managing International Mobility); and Advanced Counselling.

Her career history spans numerous industries, such as health & beauty, human resources, clothing, jewelry, hospitality, and recruitment.

Since 2013, while at Relocation Africa, Joy has successfully managed the recruitment of all Head Office staff, as well as the recruiting and training all part time consultants throughout Africa. Her passion and curiosity for “what makes people tick” has led her to embarking on a counselling course which has yet again upskilled her in many other areas. Joy sets very high standards for the business, including strict compliance in the recruitment and training portfolio and consistently has her hand on the pulse of the team, ensuring the highest standards of service delivery for our assignees throughout Africa.

New HR Role

As we grow and evolve as a business, it is important to keep in mind the valuable HR functions that enable the team, and by extension, business, to operate smoothly.

As part of her new role, Joy will be performing familiar as well as new functions. As well as the recruitment and training she did before, she will be managing internal HR responsibilities and managing the Head Office’s staff wellness and skills development programs.

We wish her all the best in her new role.

 

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].

New Level 6B Water Restrictions in Cape Town

Cape Town will be under Level 6B water restrictions from 1 February, as the city closes in on Day Zero, when taps are set to shut down.

The new restrictions limit usage to 50 liters per person per day – in contrast to the current allowance of 86 liters. Level 6B will be in place for a number of months, before the City of Cape Town considers lifting them.

Cape Town is in the middle of its summer months, and rainfall is very infrequent. Dam levels are critical, and the city is not meeting its current usage targets.

Under Level 6B restrictions borehole and wellpoint water usage is discouraged, filling up of pools is not permitted, and washing of cars can only be done using recycled water. Households using more than 6000 liters per month will face fines.

The City is currently having desalination plants build at 3 sites around Cape Town, to help augment the water supply, beginning in February. A collaborative report from researchers at numerous South African universities released recently stated that there will be dangerous levels of E.coli and Staph in the desalinated water, as the process only removes salt. The City will need to implement special filtration systems in order to remove these pathogens, and make the water safe to drink. The City has not yet commented on doing so, apart from stating that the water will meet national standards. Currently, these national standards do not, by law, require the removal of the pathogens.

The new plan is for households that use up to 6‚000 litres of water a month‚ currently paying R28.44‚ to pay R145.98 instead — though Cape Town mayor Patricia de Lille said she would push to exempt them from the punitive tariffs.

For those who use up to 10‚500 litres‚ the bill will rise from R109.50 to R390.82. Households that use up to 20‚000 litres will see their bill rise from R361.06 to R1‚536.25; up to 35‚000 litres‚ up from R1‚050.04 to R6‚939.57; and up to 50‚000 litres‚ up from R2‚888.81 to R20‚619.57. de Lille stated that provision will be made for households larger than four people to ensure that they are not unfairly penalised.

Dam levels are currently at 26.5%, and Cape Town is using over 600 million liters of water a day. The new target is 27% below that.

Western Cape Premier, Helen Zille, stated yesterday that she had written to President Jacob Zuma, requesting that a national disaster be declared, after the likelihood of Day Zero was confirmed by the City of Cape Town. On the same day, she attended a meeting at the provincial disaster management headquarters to discuss preparation for, and management of, Day Zero and its aftermath, and stated that there is no precedent anywhere in the world for this kind of disaster.

Day Zero is currently said to be 21 April, with 200 water collection sites planned to be set up around the city should the taps be shut off.

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

 

Sources: [1], [2], [3], [4]. Image source: [2].