Naspers Limited has made headlines with an update on its Repurchase Programme. The program, initiated on 27 June 2022, involves the buyback of ordinary shares in both Prosus and Naspers from their respective free-float shareholders. In a bid to enhance transparency, the company has also decided to provide voluntary updates to Naspers shareholders about the shares it has purchased.
For the period between 17 July 2023 and 21 July 2023, Naspers repurchased an impressive 427,172 Naspers Shares at an average price of ZAR3,317.7893 per share, totaling a significant consideration of ZAR1,417,266,671 (approximately US$78,992,592). The buyback demonstrates the company’s commitment to enhancing shareholder value and confidence in its long-term growth potential.
The Repurchase Programme, conducted in compliance with the Market Abuse Regulation and Commission Delegated Regulation, adheres to the regulatory technical standards for buy-back programs and stabilization measures.
The decision to provide voluntary updates to Naspers shareholders highlights the company’s dedication to open communication and fostering trust with its investors. This move aims to keep shareholders informed about the ongoing share repurchases, enabling them to make well-informed decisions based on up-to-date information.
The recent repurchase of Naspers Shares could signal the management’s confidence in the company’s performance and future prospects. Share buybacks are often seen as a strategic move to signal undervaluation, boost earnings per share, and return capital to shareholders.
As of July 2023, Naspers is the majority owner of Prosus, a subsidiary that operates and invests globally in markets with high long-term growth potential. Through Prosus, Naspers has been instrumental in building leading consumer internet companies that empower individuals and enrich communities.
The Repurchase Programme, as disclosed in the recent update, aligns with Naspers’ commitment to its stakeholders and its ongoing efforts to transform and grow South Africa’s technology sector. Notably, the company is also actively involved in social initiatives, such as Naspers Labs, which aims to transform and launch unemployed youth into economic activity through digital skills training and tech career development.
Naspers’ share repurchase activities also come at a time of increasing interest in the technology sector and growing optimism in the global economy. The move may be seen as a proactive measure by the company to utilize available capital effectively and capitalize on potential growth opportunities.
Table: Summary of Naspers’ Share Repurchase
|Period||Naspers Shares Repurchased||Average Price (ZAR)||Total Consideration (ZAR)||Total Consideration (USD)|
|17 July 2023 – 21 July 2023||427,172||3,317.7893||1,417,266,671||78,992,592|