written by reader Naspers: A way of owning Tencent at a discount?

By mxa03u, June 6, 2020

What do you think of the South African company Naspers (also traded OTC on a US listing) as a way of owning Tencent at a significant discount?

As far as I’m aware they still own a sizeable stake in Tencent (10%) as well as Flipkart and other less well known companies. I’m unsure if any were sold but their market cap would imply them trading at around a 50% discount to book value.

I noticed that Naspers was the second most major holding of the Baillie Gifford Alpha Growth ETF with it’s top holdings matching the names of my favorite holdings in my personal portfolio – Amazon Microsoft Alibaba, Alphabet.

Is it worth considering or have I done my maths wrong?

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Travis Johnson, Stock Gumshoe
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Here’s part of what I wrote about Naspers and its spinoff Prosus about a month ago: Prosus is the global technology investment arm that was spun out of Naspers last year and listed in Amsterdam, in order to raise its profile a bit, hopefully decrease the discount to its investments at which Naspers was trading, and create a bit more liquidity in this business by getting it out of the South African exchange (where it was by far the largest company) and listing it in Europe, a continent desperate for some exciting “homegrown” technology companies. And while Naspers has been… Read More »