26 March 2019

South Africa: Naspers Made a Major Announcement On Monday. or Was It? Actually, It Was. and It Wasn't

analysis

Naspers announced on Monday it would be hitching a ride to Amsterdam to list on the Euronext exchange, and in paralaxisms of joy, the stock market's reaction was to do sort of exactly nothing.

Naspers announced on Monday it would be hitching a ride to Amsterdam to list on the Euronext exchange, listing all its international assets in Europe in a company that would still be controlled by JSE-Listed Naspers.

The magnitude of the announcement and the "meh" reaction in a way summarises an odd mixture of events so typical of the complicated beast that is SA's most valuable locally listed company.

What the company announced specifically was that it would list on Euronext in Amsterdam another company called Newco, which would contain all but a few tiny SA assets, and it would consist of effectively 25% of its existing share register. In other words, no new money is being raised, and existing shareholders are not being diluted.

Once the dust settles, the result will be that the local company Naspers will own 75% of Newco. The crucial control structure, of which existing chairman Koos Bekker is the most notable member, that gives a few insiders 66% control over Naspers...

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