Picture: SUPPLIED
Picture: SUPPLIED

Naspers’s Prosus business, which it plans to list in Amsterdam in September after getting shareholder approval to do so, grew net profit by nearly a third in the first quarter to end-June.

On Friday, investors voted in favour of the plan to list Prosus on the Euronext exchange — a move partly aimed at reducing Naspers’s gaping valuation discount relative to the value of its assets.

Prosus, which will house Naspers’s prized stake in China’s Tencent alongside the group’s other foreign assets, said in a pre-listing statement on Monday that profit after tax in the first quarter rose 30.6% from a year before to $1.4bn (R21.3bn).

Prosus had assets worth $34.2bn at the end of June, from $32.9bn at the end of March, the statement shows.

The company would list up to 1.6-billion Prosus N shares, with a nominal value of €0.05 each. Naspers will retain a majority stake in Prosus post the listing.

Naspers said Prosus was expected to be one of the 10 largest consumer internet groups in the world, with a market capitalisation of about $100bn on the first trading day.

"Naspers believes that the transaction is a significant step and presents a new opportunity for global internet investors to access Naspers’s unique portfolio of international internet assets through the company," Naspers said.

The move was aimed at reducing Naspers’s weighting on the JSE while also boosting demand for its assets.

Shareholders approved the transaction on Friday, while also voting heavily against Naspers’s pay policy.

As many as 58.7% of N share investors — those who own Naspers’s ordinary stock listed on the JSE — voted against the group’s remuneration policy, and 61.3% of N share owners voted down the implementation of the pay policy.

And 69.1% voted against a resolution allowing unissued shares to be placed under the control of Naspers directors.

Naspers’s dual-share structure, which Prosus will also use, has irked some investors.

hedleyn@businesslive.co.za