Naspers (OTCPK:NPSNY/OTCPK:NAPRF/OTCPK:NPSND) has been a sum-of-the-parts story for a while now - its stock fluctuates in accordance with the market value of its holdings, the biggest of which is Tencent. Naspers has, however, traded at an outsized holding company discount for a while now.
Its latest spin-off announcement may change things - Naspers’ discount has finally begun to narrow. We believe that apart from the spin-off, management’s increased focus on value creation, profitability, and transparency will contribute to finally unlocking the Naspers net asset value (NYSE:NAV) discount.