Naspers does not plan to buy back its own shares, which are trading at a significant discount to its stake in Tencent, CEO of the internet holding company Bob van Dijk says. While some investors have called on Naspers to buy back its stock, Van Dijk said that the company would be "missing out on great opportunities". "We’re a cash-consuming company … and we have lots of opportunities that we’re putting cash against, and if you now decide to use your money to buy back shares, you’ll see a temporary increase in your share price and people will take short-term profit — and then what? "A lot of the discount has been driven by structural factors that have very little to do with what we’re doing as a company, so to now throw away the future growth to satisfy short-term returns, we just don’t want to do that," he said. Naspers would also not unbundle its Tencent investment, as "we are tremendous believers in the further potential" of the Chinese internet giant, and the move would yield sho...
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.