Naspers, which has backed MakeMyTrip, Swiggy, Byju's, Walmart-owned Flipkart, OLX India, and PayU in India so far, will be listing its entire portfolio companies outside South Africa including Tencent, mail.ru, DeliveryHero etc., under a new entity on Euronext Amsterdam stock exchange by second half of 2019.
South Africa-based global technology investor Naspers on Monday announced that it intends to list its international portfolio companies — including its India investments — on the Euronext Amsterdam stock exchange by the second half of 2019. Naspers has been among the most prominent growth stage investors in India-focused businesses including MakeMyTrip, Swiggy, Byju’s, Walmart-owned Flipkart, PayU, and OLX India.
Naspers said that it create a new entity that would comprise all its international internet businesses. The name for the new entity will be announced in coming months, Naspers said in a statement.
Once listed, the new entity would become the largest listed consumer internet group in Europe by asset value.
Naspers’ global portfolio operates in multiple sectors including payments, online retail, food delivery, online classifieds, education, travel, and social and internet platforms etc.
Majority part of the new entity — around 75 per cent — will be controlled by Naspers while remaining would be free float.
“It (new entity) will provide a strong platform to attract incremental investor capital, which is well-aligned to our growth goals. The listing will present an appealing new opportunity for international tech investors to have access to our unique portfolio of international internet assets,” said Bob van Dijk, Chief Executive Officer, Naspers.
Apart from opening up investments to a wider category of investors, Dijk said that the listing is aimed at reducing Naspers’ weighting on the Johannesburg Stock Exchange that is believed to maximise their shareholder value over time.
“Naspers now constitutes almost 25% of the JSE SWIX index, compared to 5% just 5 years ago, and its outsized weighting on the JSE exceeds most South African institutional investors’ single stock limits. As a result, many have been forced to sell as Naspers grows,” Naspers said.
Naspers’ biggest return from India market has been sale of its 11.18 per cent in Amazon’s arch-rival Flipkart following its buyout by the US-based retailer Walmart for around $16 billion last year. The exit gave Naspers 32 per cent return on the investment amounting to $2.2 billion. It has also exited MakeMyTrip, as per deals tracker Crunchbase.
The company has also seen consolidation among its companies in India including redBus’s acquisition by Ibibo in 2013 and MakeMyTrip’s acquisition of GoIbibo in 2016.
Naspers’ recent rounds came in food delivery app Swiggy and learning app Byju’s last December when it led whopping $1 billion and $540 million investments respectively.
Its other major portfolio brands globally that would be listed under the new entity includes Tencent, mail.ru, Avito, letgo, PayU, iFood, DeliveryHero, Udemy, and eMAG.
Comments from Naspers will be updated as and when received.
To be updated…