Prosus announced today that it plans to acquire up to a total of USD 5 Billion in total of Naspers and Prosus shares as this is another step to provide value for shareholders. Previously the unbundling of MultiChoice Group and the listing of Prosus on Euronext Amsterdam last year.
Bob van Dijk, Chief Executive Officer of Prosus and Naspers, said:
“We have found several large M&A opportunities in our sector to be fully priced and have stayed disciplined. Utilising cash to own more of our current portfolio through a purchase of our own shares – when the discount to NAV is sizeable – is a sensible use of capital.”
Basil Sgourdos, Chief Financial Officer of Prosus and Naspers, said:
“Over the years, our group has achieved improved financial flexibility. It has built a portfolio of ecommerce assets with significant cash-flow generating capabilities. The group is now in a position to both invest in its asset portfolio, and to purchase its own stock when it makes sense from a returns perspective.”
Management and the Naspers and Prosus boards are committed to delivering long-term returns for shareholders. We will also continue working on a series of initiatives to further address the consolidated discount to net asset value.”
Up to USD 5 Billion in shares of Naspers and Prosus are to be purchased in the open market via 72.5%/27.5% basis. Cash will be used to fund these purchases, Naspers shares acquired are expected to be held in treasury and excluded from Naspers per share financial metrics.