South Africa: Party may be over for Naspers investors as Tencent growth stalls

By David Whitehouse
Posted on Tuesday, 24 January 2023 12:21

A cosplay fan poses for a photo at a Tencent Games booth during the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. REUTERS

Investors for years have applied a heavy discount to the basket of assets held by South Africa’s Naspers, where a dual system of voting rights ensures insider control.

A series of attempts by management including the creation of the separate Prosus unit listed in Amsterdam, and a pledge last June to gradually sell down the Tencent stake to fund share buybacks, have had little success in reducing the discount.