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Prosus is set to enter the EuroSTOXX 50 index on September 18, having finally satisfied the criteria for inclusion at the end of August.
It is hoped that this will create more demand for the stock, and help close the deep discount that persists between the market value of Prosus and its holding in Tencent. The valuation gap is currently about 32%, according to Goldman Sachs. Remember, Naspers owns most of Prosus. You probably own both in your JSE portfolio.
Daily Maverick journalist Sasha Planting wrote a fresh update about this whole issue yesterday, and it's worth a read. She points out that Tencent has had a very good year, but Prosus and Naspers are lagging again. She notes that the other e-commerce assets in the Prosus stable are coming along, but rather slowly. The pressure is rising on management to take further steps to unlock value here.
Naspers, a year on and the problems are much the same.
