Naspers’s latest results appear to reinforce shareholder concerns about the divergence in performance between the group’s 33% stake in China-based Tencent and its e-commerce ventures. The results highlighted Tencent’s dominance and the cash-guzzling nature of the e-commerce ventures. Bloomberg reported at the weekend Naspers would approach investors in the US and UK about a bond issue, which CEO Bob van Dijk said would be used for expansion and to refinance some of its current debt. Fairtree Capital’s Jean Pierre Verster said several factors should help soothe shareholder concerns about Naspers’s value trap. "Development spend on e-commerce has increased, but at a slower rate and a number of e-commerce divisions are reporting profit," he said. Disclosure had improved, Verster said. The group appeared to be nearing the end of major spending. "In the next year or two, we might see a listing of some of the e-commerce businesses." On Friday, Naspers’s share price closed 2.6% higher at R...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.