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Naspers to list international Internet assets

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 25 Mar 2019
Naspers CEO Bob van Dijk.
Naspers CEO Bob van Dijk.

Naspers intends to list NewCo, a new global consumer Internet group, on Euronext Amsterdam, the global Internet company announced this morning.

In a statement, Naspers says NewCo, which will comprise its international Internet assets outside SA, will also have a secondary, inward listing on the Johannesburg Stock Exchange (JSE).

These interests, continues the statement, include Naspers' investments and companies, such as Tencent, mail.ru, OLX, Avito, letgo, PayU, iFood, Swiggy, DeliveryHero, Udemy, eMAG and MakeMyTrip.

NewCo is expected to be approximately 75% owned by Naspers and have a free float of approximately 25%, it adds.

Furthermore, the transaction will be subject to the requisite regulatory and shareholder approvals being obtained. The proposed transaction is expected to be implemented no earlier than the second half of 2019.

"Forming and listing a new, global consumer Internet group on Euronext Amsterdam is a significant step for Naspers. It will provide a strong platform to attract incremental investor capital, which is well-aligned to our growth goals," says Naspers CEO Bob van Dijk. "The listing will present an appealing new opportunity for international tech investors to have access to our unique portfolio of international Internet assets."

He continues: "As well as opening up investment to a broader category of investors, the listing aims to reduce our weighting on the Johannesburg Stock Exchange, which we believe will help us maximise shareholder value over time."

Basil Sgourdos, Naspers CFO, adds: "We are aligned with our shareholders' desires to maximise the value we create and also to address our weight on the JSE. We have therefore taken several actions in the past year or so, such as a trim of our Tencent stake, exiting several businesses including the sale of our Flipkart stake, driving the performance of our core Internet businesses, and more recently, the listing and unbundling of MultiChoice Group Limited.

"After a careful and comprehensive evaluation of the merits of strategic options available to the group, the listing on Euronext Amsterdam proved to be the most promising for our future growth plans and addressing the market dynamics we wish to tackle."

Naspers says it will retain its primary listing on the JSE, and will continue to directly hold its South African assets, Takealot and Media24, alongside its majority stake in NewCo.

"NewCo's free float is expected to be created by Naspers through a capitalisation issue of NewCo shares to Naspers shareholders. Shareholders will also be able to choose to receive more shares in Naspers instead of shares in NewCo, subject to certain limits. This is intended to provide flexibility to shareholders.

"Further details relating to the implementation of the proposed transaction will be provided in due course. It is intended that the board and governance structures of NewCo will mirror those of Naspers."

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