SHAREHOLDER VALUE
BRIAN KANTOR: Big spender Naspers is worth less than the sum of its parts
For all its past success, the management and directors of Naspers have a very large problem with investors, writes Brian Kantor
When the financial history of SA in the first two decades of the 21st century is written, the role played by Naspers will be a prominent one. Its achievements reflect many of the important themes of our financial times, providing outstanding returns to shareholders that have made Naspers by far the most important contributor to the JSE. Market value rose from R7bn in 2003 to nearly R850bn by the end of 2016. The value added for shareholders came from participating in the new digital economy and by taking advantage of SA’s access to global markets. The most valuable action of Naspers management was the decision taken in 2001 to purchase 46.5% of Tencent (a Chinese internet business listed in Hong Kong) for $34m. This stake has since been reduced to 34.33%. For all its past success, the management and directors of Naspers have a very large problem with investors. The market reveals that Naspers would be worth much more to its shareholders if it sold off all its assets and paid off its...
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