Market Wrap - Stock Pick - Naspers
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Robert Cameron from Thebe Stockbroking chose Naspers as his stock pick of the day.
“The reason I like it is because previously there has been a lot of noise around their value unlock that hasn't been happening because of the Tencent valuation being more than the market cap of the entire Nasper group. This means that you get everything else for free. With the Multichoice unbundling we saw a month ago shows the willingness of management to distribute these assets back to shareholders so that the market can value those as a separate listing. What we are seeing now is that they are going to spin off 25% of Naspers international internet holdings which include Tencent into a listing in Amsterdam and that will be made available to Naspers shareholders. Nasper is in a growth sector positioned for the future in terms of AI and the Fourth Industrial Revolution."
“The reason I like it is because previously there has been a lot of noise around their value unlock that hasn't been happening because of the Tencent valuation being more than the market cap of the entire Nasper group. This means that you get everything else for free. With the Multichoice unbundling we saw a month ago shows the willingness of management to distribute these assets back to shareholders so that the market can value those as a separate listing. What we are seeing now is that they are going to spin off 25% of Naspers international internet holdings which include Tencent into a listing in Amsterdam and that will be made available to Naspers shareholders. Nasper is in a growth sector positioned for the future in terms of AI and the Fourth Industrial Revolution."
