Prosus N.V. has made a significant move in its ongoing repurchase program for ordinary shares. The company recently revealed that it successfully repurchased a substantial number of Prosus Shares in a specific period, reflecting its confidence in the future prospects of the business.
As part of the Repurchase Programme, which was initially announced on 27 June 2022, Prosus repurchased an impressive 2,677,348 Prosus Shares during the period between 10th and 14th July 2023. The shares were bought back at an average price of €67.1408 per share, totaling a consideration of €179,759,239 (approximately US$200,015,202).
The Repurchase Programme, an open-ended initiative in respect of the ordinary shares of both Prosus and Naspers, aims to repurchase shares from the Group’s free-float shareholders. The program is part of Prosus’s strategy to optimize its capital structure, enhance shareholder value, and signal the company’s confidence in its future performance.
The recent buyback demonstrates Prosus’s strong financial position and its commitment to creating long-term value for its shareholders. By repurchasing its own shares, the company indicates that it believes the current share price may not fully reflect the true value of the business, making it an attractive investment opportunity.
The move also provides liquidity to existing shareholders who participated in the Repurchase Programme, allowing them to realize gains on their holdings or allocate their capital elsewhere. Share buybacks can enhance shareholder returns by reducing the number of outstanding shares, thereby increasing earnings per share for the remaining shareholders.
Table 1: Prosus Repurchase Program Details
|Date||Repurchased Shares (Prosus Shares)||Average Price per Share (€)||Total Consideration (€)||Total Consideration (ZAR)|
|10 July – 14 July||2,677,348||€67.1408||€179,759,239||ZAR 3,235,668,302|
Conversion Rate: 1 USD = ZAR 18
In addition to being a technology investment company, Prosus has a diverse portfolio of successful ventures in various sectors, including online classifieds, food delivery, payments and fintech, and education technology. Through its ventures team, the company also explores opportunities in health, logistics, blockchain, and social commerce.
Prosus has established itself as a major player in the global consumer internet industry, with billions of customers using the products and services of the companies it has invested in, acquired, or built. The company’s presence in emerging markets such as India and Brazil positions it well for long-term growth and expansion.
For shareholders and investors, the recent share repurchase signals Prosus’s commitment to delivering value and generating strong returns. With a primary listing on Euronext Amsterdam (AEX: PRX) and secondary listings on the Johannesburg Stock Exchange (XJSE: PRX) and a2X Markets (PRX.AJ), Prosus offers a well-diversified investment opportunity across multiple markets.