NAPRF - Naspers: Substantial Revaluation Of Tencent Not Worried About South Africa
2024-06-04 14:16:21 ET
Summary
- Naspers' performance is determined by Prosus whose performance is determined by Tencent.
- Tencent has recovered from intense negative sentiment in 2023 and early 2024, revaluing Naspers nicely.
- Naspers and the ZAR have come down on account of the ANC losing its majority in South Africa. They may have to let more extreme parties into a coalition.
- Expropriation in South Africa could become policy one day, but probably not for now. At any rate, it would be focused on land, and Prosus is based in Europe. Naspers shareholders should be secure.
- Even if Naspers' discount to Prosus makes sense based on political risks, it doesn't eliminate tangible benefits from buybacks and other distributions that Naspers may do. It is compelling.
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Naspers: Substantial Revaluation Of Tencent, Not Worried About South Africa