PROSF - Prosus: A Vehicle To Invest In Tencent Trading At A Wide Discount
Investment Thesis
When I invest, I usually prefer direct exposure compared to holding Company due to poor capital allocation of the parent company, additional layers of costs, and skewed corporate governance. There are a few exceptions when I think it is better to get exposure through holding Company. I believe one such example is Prosus (PROSY; PROSF).
Business Model
Prosus is a Dutch holding company that was spun off from the South African Naspers a year ago. The main asset is a 31% stake in Tencent. Other meaningful investments are Mail.ru, Ctrip.com, and DeliveryHero. Prosus