Naspers-owned Prosus selling Tencent stock to buy back own shares

2022/06/27 09:27:00

Naspers-owned Prosus selling Tencent stock to buy back own shares

Naspers-owned Prosus selling Tencent stock to buy back own shares

Prosus also sold JD.com shares it received from Tencent for $3.7 billion (R58.6 billion).

Subscribe Naspers and Prosus have announced a share repurchase programme, where it will sell a portion of the group’s Tencent Holding shares to buy back its own stock.26 June 2022 - 18:43 Garth Theunissen The world may be teetering on the brink of a recession that has sparked off a slide in stock markets worldwide, but that is not deterring SA’s biggest listed asset manager from looking for buying opportunities in the ashes of the market rout.26 June 2022 - 18:43 Garth Theunissen The world may be teetering on the brink of a recession that has sparked a slide in stock markets worldwide, but that isn’t deterring SA’s biggest listed asset manager from looking for buying opportunities in the ashes of the market rout.23 June 2022 - 05:00 Ann Crotty It wasn’t the first time Naspers has issued a profit warning; its substantial investments in various e-commerce ventures, as well as the odd corporate restructuring, make it almost inevitable.

The repurchase programme will be funded by the on-market sale of Tencent shares held by the group, and the group’s CEO, Bob van Dijk, said the programme is expected to increase the value of the group’s shares.“Today, we are announcing an open-ended share repurchase programme that is designed to unlock significant value for our shareholders over time,” van Dijk said.9bn (R2.“We expect the programme to significantly increase the net asset values per share for Prosus and Naspers.8-trillion) in assets, says that while it has trimmed the equity holdings in its general equity and balanced portfolios as part of a more defensive stance, it is already looking to buy quality stocks, which are suddenly looking cheaper thanks to the recent market mayhem.” “It will also rebalance our asset base towards our fast-growing non-Tencent assets, whose value we expect to increase over time while retaining exposure to Tencent’s significant value creation potential,” he added.That is despite portfolio manager Hannes van den Berg, Ninety One’s co-head of SA equity and multi-asset, saying there is probably a 50/50 risk of a worldwide recession.The repurchase process will begin with Prosus selling a small amount of ordinary Tencent shares while purchasing Naspers and Prosus shares in parallel.2bn in new acquisitions and existing business to expand the group’s ecosystem and “to position the business for continued long-term growth in line with long-term strategy”.

“Tencent is supportive of the withdrawal by Prosus of its voluntary restriction on the sale of its Tencent Shares,” the group added...The group has appointed intermediaries to execute the sale and repurchase of shares independently from and uninfluenced by Naspers and Prosus.It received authorisation from Naspers and Prosus shareholders for the repurchase programme during meetings held on 24 and 25 August 2021.A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.Shareholders granted the authorisation for a maximum period of 18 months from the date of the meeting.Already subscribed? Simply sign in below.The group said it would request similar permission during its 2022 Prosus Annual General Meeting..A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

The company may repurchase nearly 265 million Prosus shares (currently worth R233 billion) at a price the group said could not be lower than the nominal value of the shares and not higher than the opening price on Euronext Amsterdam on the trading day of the repurchase.Separately, the companies also announced that Prosus (R58.6 billion) on the Hong Kong stock exchange.Prosus received just short of 132 million JD.com shares as a Tencent stockholder.

Tencent’s board of directors declared a special interim dividend on 23 December 2021, where it decided to distribute Class A shares of JD.com.The shares received by Prosus represented the majority of JD.com shares held by Tencent.Now read:.

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