Naspers shareholders may be in for Tencent buy-back windfall
Hong Kong-listed and 31% Naspers-owned tech giant Tencent says it plans to purchase up to 10% of its stock from the market
Investors in Naspers, Africa’s biggest internet group, could be in for a reward after its biggest asset Tencent said it would buy back its own shares. The buy-back could drive up the market value of the world’s biggest video game company. Hong Kong-listed Tencent issued a notice to shareholders on Monday, proposing a share buy-back scheme, which could see the group take up to 10% of its stock from the market. Investors in Naspers, which owns 31% in the Chinese tech giant, could see good gains in the short term as its shares are likely to trade upwards in line with those of Tencent. Naspers share price has jumped 16% since January. On Tuesday it closed 1.26% up at R3,388.00. Lester Davids, a trading desk analyst at Unum Capital, said that “should the price hold and the ... rand continue to weaken, the most immediate implications would be positive for Naspers since the share closely tracks Tencent’s performance in Hong Kong”. Naspers would not comment on the proposed buy-back saying i...
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