Naspers to sell shares to further fund internet investments

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Multinational internet and media group Naspers is looking to sell as many as 18.2 million shares in an effort to drum up $2.5 billion  – around R36 billion – that will be put forward to fund further investments in internet-based companies.

Naspers already has a stake in TenCent (which owns WeChat), Russian mail client Mail.ru and a number of South African ventures likes ShowMax, DStv, Media24 and OLX. With the gathered cash from the share sale, it will primarily focus on completing the acquisition of Russian classifieds website Avito.

“We are considering a capital raise of up to US$2.5bn which, including the Avito acquisition, will enhance financial flexibility over the next few years [and allow us] to invest in attractive growth opportunities. Any capital raise is expected to be within existing shareholder authorities,” the company said in a SENS announcement.

If you have been thinking of picking up a slice of Naspers, shares are going for around R1 975 a pop.

“A total of 18 167 848 new Naspers N ordinary shares (the “Placing Shares”) were successfully placed with qualifying institutional investors at a price of ZAR 1 975 per share. The Placing Shares being issued represent approximately 4.3% of Naspers’s issued N ordinary share capital prior to the Capital Raising,” it added.

As with moves of this nature, bureaucratic hoops need jumping through before it can actually happen.

“Subject to approval by the JSE Limited, listing and trading of the Placing Shares is expected to commence on 11 December 2015.”

Charlie Fripp

Charlie Fripp

Charlie started his professional life as a motoring journalist for a community newspaper in Mpumalanga, Charlie explored different journalistic angles since his entry into the fast-paced world of publishing in 2006. While fostering a passion for the arts, Charlie developed a love for technology – both which allowed him to serve as Entertainment and Technology Editor for an online publication. Charlie has since been heavily involved in consumer technology for various websites and publications. He thoroughly enjoys World War II films and cerebral documentaries; aviation; photography and indie music. Oh yes, and he also has a rather strange obsession with collecting coffee mugs from his travels.

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