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Naspers Share Buyback

Not many SA companies can do share buybacks at the moment. Realistically only one can do R22.4bn worth of buybacks and that is Naspers.

To try and close their discount to NAV they sold 1.5bn Euros worth of Prosus shares in January in order to buy back Naspers shares with the proceeds. The Naspers discount is bigger than the Prosus discount so that makes sense. As Warren Buffett so often says (and does). If the market is undervaluing your own stock, buy it back yourself.

On Monday Naspers announced that the buyback was completed at an average price of R2 447.11 per share. Last night the share closed at R2 615.95. Already in the money.

Paul covered Naspers/Prosus/Tencent in detail yesterday. It represents a significant part of our local holdings so it deserves a lot of coverage.


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