Naspers shares up on Polish sales
Global media and e-commerce group Naspers would use the $3.25bn raised from the sale of its Polish e-commerce businesses Allegro and Ceneo to repay debt, fund the growth of other e-commerce businesses and to make acquisitions, it said on Friday.
Naspers shares surged 4.7% to R2,294.99 on Friday, as the market responded positively to the news. Naspers has significant exposure to China through its one-third stake in mobile gaming and messaging service Tencent.
Naspers said the decision to sell was in line with its strategy of unlocking returns by exiting earlier investments.
CEO Bob van Dijk said in the latest annual report that most of the group’s growth in the current year would be organic, through expanding the scale of established e-commerce businesses, but it was also prepared to make acquisitions.
Naspers acquired Allegro eight years ago for $1.485bn and the company has since strengthened its position in the market, generating a total of $714m in cash flows. On the back of Allegro, Naspers developed other businesses in Poland, including OLX.pl and PayU.pl.