Prosus N.V. has successfully completed its open-ended repurchase program, buying back a significant number of its ordinary shares. The program, initiated in June 2022, aimed at acquiring ordinary shares of both Prosus and Naspers from their respective free-float shareholders. As part of this initiative, Prosus repurchased 2,308,036 of its own shares between July 17 and July 21, 2023, at an average price of €67.2876 per share, resulting in a total consideration of €155,302,261 (approximately US$173,688,108).
The Repurchase Programme, authorized and conducted under the Market Abuse Regulation and the Delegated Regulation, was a strategic move by Prosus to optimize shareholder value and bolster investor confidence. By repurchasing its own shares from the open market, the company aims to demonstrate its belief in the business’s long-term prospects while signaling that the current share price may be undervalued.
Table: Summary of Repurchase Program
|Repurchase Program Dates||Number of Prosus Shares Repurchased||Average Price per Share (€)||Total Consideration (€)||Total Consideration (US$)|
|July 17 – July 21, 2023||2,308,036||67.2876||155,302,261||173,688,108|
Prosus, with primary listings on Euronext Amsterdam (AEX:PRX) and secondary listings on the Johannesburg Stock Exchange (XJSE:PRX) and a2X Markets (PRX.AJ), operates globally and focuses on markets with long-term growth potential. The company has established itself as a major player in various sectors, including online classifieds, food delivery, payments and fintech, and education technology, with a particular presence in markets such as India and Brazil.
The completion of the Repurchase Programme comes as a positive development for investors and showcases the company’s commitment to delivering shareholder value. By investing in and building leading consumer internet companies worldwide, Prosus aims to empower individuals and enrich communities.
Investor sentiment remains optimistic following the share buy-back, as it signals the company’s confidence in its own growth trajectory. Repurchasing shares can be a shrewd strategic move, especially when the company believes its stock is undervalued. The reduction in the number of outstanding shares can also increase earnings per share and potentially improve financial metrics.