Naspers was taking measures to reduce its stock’s significant discount to fair value, largely the result of capital outflows from SA, CEO Bob van Dijk told investors in New York on Tuesday. The internet holding company’s discount to the value of its underlying portfolio was about 38%, versus a fair discount of about 20%, Van Dijk said. "Our discount was 20%-25% for a long time, but that started changing about 20 months ago," he said. This was primarily the result of capital outflows from SA due to "political turmoil" and other risks associated with investing in the country. Since Naspers accounted for about a fifth of the JSE all share index, "we take a disproportionate share" of outflows. It was also partly a function of the group’s still unprofitable e-commerce business, which continues to suck up cash as it builds scale. To reduce the discount, Van Dijk said getting Naspers’s e-commerce business to profitability was a "top priority", while the group would also improve transparenc...
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