Naspers and Prosus share exchange plan underwhelms market
Extent of the change is significant but insufficient as the SA company will retain the largest weighting on JSE
08 June 2021 - 18:40
The proposed share exchange Naspers and Prosus offered as a solution to the large valuation discount in the Naspers share price appears to have underwhelmed the market.
The discount refers to a company’s share price trading at a lower price than its net asset value (NAV). In Naspers’s case, this relates to, but is not limited to, its size in the JSE capped index. It also has to take into account the tax environment in SA vs other jurisdictions, in this case Amsterdam where Prosus is listed. ..
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