Naspers, Africa’s largest company by market value, will list new subsidiary Prosus on Amsterdam's Euronext exchange on Wednesday.

Prosus includes Naspers's prized stake in Chinese tech giant Tencent, and several businesses from Brazil to Germany in industries such as online food delivery and classified advertising.

Naspers opted to list Prosus, in which it holds a 73% stake, to ease its dominance on the JSE, and hopes this will help to address the fact that its share price has been trading at a discount for some time.

This means that despite having the largest market capitalisation on the JSE at R1.48-trillion, the sum of Naspers’s assets is worth more than it is trading at.

After the Prosus listing, Naspers will drop to about 15% of Johannesburg’s equities benchmark from a huge 21% currently, Peter Takaendesa, a Cape Town-based fund manager, estimates. Prosus should be valued at about $100bn when it starts trading in Europe.

The move to carve out Prosus may be less positive for exchange operator JSE, Sentio Capital money manager Olwethu Notshe said. “In the longer term, because foreigners don’t have to access Tencent via Naspers on the JSE, it could result in lower activity, as foreigners will likely be more active on the Amsterdam bourse to access Tencent.” 

Prosus will have a secondary listing on the JSE. It is expected to be one of the 10 largest consumer internet groups in the world when it starts trading.

With Bloomberg


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