Tencent investor Naspers sees profit boost ahead of spinoff

A logo sits on display inside the headquarters of Napsters Ltd., at the Media24 Ltd. office complex in Cape Town, South Africa. Photographer: Halden Krog/Bloomberg

Naspers Ltd.’s full-year earnings rose by as much as a third ahead of the technology group’s planned asset spinoff in Amsterdam, a move designed to reduce its dominance of Johannesburg’s stock exchange.

Core headline earnings per share, which strip out non-operational items, are expected to have grown by between 31% and 33%, the Cape Town-based company said in a statement ahead of more detailed financials scheduled for June 21.

The market value of Africa’s biggest listed company has increased by five times in the past six years, largely due to growth in Naspers’s 31% stake in Chinese internet giant Tencent Holdings Ltd. to about $128 billion. The company now makes up about 25% of the FTSE/JSE Africa All-Share Index, compared with 5% in 2013.

To rectify that, Naspers plans to separate its global technology and e-commerce investments into a new company in the Netherlands next month. The move will reduce the need for South African institutional investors to sell shares to stay within exposure limits to a single stock, while attracting new global shareholders, Naspers said last month.

While Naspers didn’t give a reason for the improving operating performance, Tencent reported a better-than-expected 17% rise in first-quarter net income last month. The South African company’s stake in the Chinese firm is worth more than Naspers as a whole, and management led by Chief Executive Officer Bob Van Dijk are striving to reduce that gap.

The shares rose 0.8% to 3,489.41 rand as of 11:35 a.m. in Johannesburg, valuing Naspers at 1.5 trillion rand ($101 billion). The stock has gained 24% this year, compared with a 13% rise on the FTSE/JSE Africa Top40 Index.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.