Naspers delays multi-billion euros internet float after admin error
(Recasts with flotation delay, adds CEO quote)
By Nqobile Dludla
JOHANNESBURG, June 21 (Reuters) - South Africa's Naspers
has been forced to delay the multi-billion euro
flotation of its international internet assets, including its
lucrative stake in China's Tencent, after an admin
error by a third party involved in the float.
The company said a shareholders' meeting in Cape Town on
June 28 to approve the flotation on Euronext Amsterdam, with a
secondary listing on the Johannesburg Stock Exchange (JSE), had
been cancelled and reconvened for Aug. 23.
The listing of the new company, to be called Prosus, has
been moved to September from July 17.
Naspers said the third-party error meant some postal copies
of the resolution for the meeting had been wrongly addressed. It
did not name the provider involved or say if any compensation
would be sought.
"It was outside our control but still unfortunate", Naspers
Chief Executive Bob Van Dijk told reporters on a conference
call. "We think from a governance point of view it's extremely
important we treat and inform our shareholders well, and we felt
with this mistake, maybe people are still informed, but we
wanted to take no chance."
The flotation of the business, with assets valued at more
than 100 billion euros ($112 billion), is motivated by the value
of its 31.2 percent Tencent stake, worth around 100 billion Hong
Kong dollars, and which has made Naspers' valuation account for
more than 25 percent of the JSE's Top 40 share index.
That makes it problematic for South African pension funds
and other investors in Africa to buy Naspers shares or South
African indexes without disproportionate exposure to Tencent,
one of China's biggest social media and gaming groups.
Naspers plans to retain a 73% stake in the new company,
which will hold assets also including its OLX classified
businesses in India and Brazil, and its U.S. business letgo.
Naspers also on Friday reported a 25% rise in annual core
headline earnings per share, thanks to reduced losses at its
The company, whose e-commerce holdings cover areas such as
food delivery, classified ads and online retail, said core
headline earnings per share from continuing operations reached
694 cents in the year through March, compared with 553 cents the
Core headline EPS is Naspers' main profit measure that
strips out non-operational and one-off items. Headline earnings
rose 26% to $3 billion.
Naspers said its e-commerce division which houses assets
such as OLX narrowed its trading loss (at the EBITDA level) by
14%, or 15% in local currency and adjusted for acquisitions and
disposals, to $556 million.
"Trading losses in e-commerce reduced significantly with the
classifieds business continuing its margin improvement to become
profitable in the aggregate for the year ended 31 March 2019,"
it said in a statement.
Other e-commerce assets also continued to expand, with
online retail trading losses almost halving and the Payments and
Fintech business narrowing its trading loss margin to 12% from
22% last year.
The internet business, which houses Tencent, saw trading
profit rise 11% as many e-commerce units boosted profitability
and Tencent delivered a stable performance, it said.
Shares in Naspers closed 1.1% weaker at 3,441 rand.
($1 = 14.3200 rand)
($1 = 7.8097 Hong Kong dollars)
(Reporting by Nqobile Dludla
Additional reporting by Toby Sterling in Amsterdam
Editing by Susan Fenton and David Holmes)
First Published: 2019-06-21 15:29:39
Updated 2019-06-21 18:02:06
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