Shareholders approve Naspers, Prosus share swap
The deal has attracted much criticism from fund managers for its complexity and incentives for management
Naspers shareholders on Friday overwhelmingly approved the company’s plans to address the much-criticised gap between its market value and the sum of its assets via a share swap.
The deal, which is also intended to cut Naspers’s weighting on the JSE and increase the free float of its global internet arm Prosus, is the latest in a string of attempts by management to narrow the multibillion-rand valuation shortfall.
The deal will see Prosus, which was spun out of Naspers and listed in Amsterdam in 2019 as part of a previous attempt to deal with Naspers’s share price discount, issue new shares in exchange for a stake of about 45% in Naspers.
The resolutions were passed with just over 90% of shareholders in favour of the proposal, that was probably bolstered by approval from holders of N shares that carry more voting rights.
The complex nature of the deal has not won favour with investors; Naspers and Prosus shares have fallen about 9% since the plan was announced two months ago.
Last month, 36 asset managers criticised the deal for its complexity and the incentives offered to management.
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