Prosus-Naspers Share-Swap Transaction Completed
Amsterdam, Aug. 16, 2022
Technology investor Prosus (PRXAS) and its South African parent Naspers (NPN) on Monday announced the completion of the share-swap transaction that was approved by shareholders in 2021. The transaction aimed to reduce Naspers' weighting on the Johannesburg Stock Exchange (JSE).
Details of the Transaction
Under the terms of the exchange offer, Prosus offered 227443 of its ordinary shares for each Naspers ordinary share tendered. Naspers shareholders holding approximately 45% of the company's shares accepted the offer, resulting in the exchange of approximately 2 billion Prosus shares for Naspers shares.
Rationale for the Transaction
The transaction was primarily driven by Prosus' desire to narrow the valuation gap between itself and Naspers. Prosus' stake in Naspers, valued at R3 trillion ($229 billion), had been weighing down on its own valuation. By acquiring a significant portion of its parent company, Prosus aimed to improve its own market capitalization and future growth prospects.
Impact on the Companies
For Naspers, the share-swap transaction reduces its free float on the JSE, giving it more flexibility to manage its portfolio and pursue strategic investments. For Prosus, the acquisition of a large stake in its parent company consolidates its position as a leading technology investor and provides access to Naspers' extensive portfolio of businesses.
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