Prosus, the technology investment arm of Naspers, plans to sell or list businesses that no longer meet its high-return expectations after shareholders voted to untangle its complex cross-holding structure with Naspers.
- The separation of the two companies is expected to attract new investors by simplifying the ownership structure and enlarging Prosus’ shareholder base.
- Prosus CEO Bob van Dijk believes that delivering profitable businesses will alleviate investor concerns and narrow the trading discount between Prosus and Naspers.
- An open-ended share buyback program will help reduce the discount and align Prosus’ market cap and net asset value.
- Prosus may sell or list certain businesses separately to unlock their value and optimize its portfolio. Van Dijk highlights the potential for initial public offerings (IPOs), sales, or consolidation when market conditions improve.
- Prosus recently announced the sale of part of its stake in PayU to Rapyd for R11.3 billion, excluding its major payments market in India and units in Turkey and Indonesia.
- The company aims to become profitable by the first half of 2025, focusing on cost reduction and strategic actions such as mergers, sales, and divestments to enhance shareholder returns.