Naspers at 700 Rand!

So what happened to Naspers stock? The share price closed up 5.7 percent to close at 699.1 ZAR, having gone through 700 ZAR during the course of the day. Remember that Naspers owns a 34.26% stake in TenCent. If you need a refresher of the last set of numbers, here goes: Naspers. Next big focus, e-commerce. But what is that 34.26 percent worth? Well, luckily for us, the business is listed in Hong Kong and has the best share code: 0700. The stock last traded (as I was writing this) at 287.40 Hong Kong Dollars. The company has a market cap of 532.65 billion Hong Kong Dollars, Naspers stake translates to 182.48 billion Hong Kong Dollars. One Hong Kong Dollar equals 1.19 ZAR. Easy, multiply the one by the other and hey presto: 217 billion ZAR. Current market cap, as of last evenings close: 290 billion Dollars.


What does that tell you? It tells me that the local market participants still do not value that portion properly, and are giving a discount to a rich valuation in Hong Kong. Part that, part the fact that the stake would be difficult to sell to anyone, if they (Naspers) were a seller. So the rest of the business you get for 73 billion Rands. They have six million subscribers in their pay TV business, of which 4.2 million are here on our shores. And that business makes around 8 billion ZAR in operating profits, growing in the high teens. Amazing hey? Our market affords the company a big discount. Forget all their other businesses, these two, these simple two are about all that everyone looks at for now. That will change in the coming years. The business continues to evolve and take shape for the future, and they had better keep up, they have set themselves up for continued and heightened successes. Results late June, trading statement just before that.