Prosus Plays the Market: Tencent Share Sell-Off and Naspers’ Unwavering Repurchase Program Steal the Financial Spotlight

  • Naspers confirms the open-ended Repurchase Program remains unchanged, assuring shareholders of its commitment to the initiative.
  • Prosus, a Naspers subsidiary, sold 513,500 Tencent shares, adjusting its ownership percentage to 24.99%.
  • The Repurchase Program aligns with EU regulations, and the Tencent share sale triggers Disclosure of Interest notifications.
By Lethabo Ntsoane

In a recent development, Naspers Limited has issued an update on its open-ended repurchase program, shedding light on the sale of ordinary shares in Tencent by its subsidiary, Prosus. The announcement, dated December 7, 2023, brings crucial details for shareholders and the market.

Repurchase Program Continues Unaltered

Naspers had initially launched the repurchase program on June 27, 2022, targeting ordinary shares in both Prosus and Naspers. The latest update reassures shareholders that the open-ended Repurchase Program will continue without any modifications, maintaining its existing framework.

Prosus Sells Tencent Shares

A notable highlight in the update is the sale of 513,500 ordinary shares in Tencent by Prosus. This transaction brings Prosus’s total ownership in Tencent to 24.99%. Following this sale, both Prosus and Naspers are obligated to make Disclosure of Interest notifications to the Stock Exchange of Hong Kong Limited.

Table: Summary of Tencent Share Sale

DateCompanyShares SoldNew Ownership Percentage
December 7, 2023Prosus (Naspers Subsidiary)513,50024.99%

Regulatory Compliance

The Repurchase Program is being conducted in accordance with Articles 5(1) and 5(3) of the European Union’s Market Abuse Regulation. Furthermore, the Disclosure of Interest notifications, triggered by the change in Tencent ownership percentage, demonstrates the commitment of both Prosus and Naspers to adhere to regulatory requirements.

Forward-Looking Statements Disclaimer

It’s important to note that the information contained in the announcement may include forward-looking statements. These statements are based on the best judgment of Prosus as of the date of the announcement but carry inherent risks and uncertainties. Shareholders and stakeholders are advised not to solely rely on these forward-looking statements for predicting actual results.

The Repurchase Program is conducted within the framework of EU regulations on market abuse, and this document is issued in connection with the disclosure and reporting obligations set out in the relevant regulations.

Conclusion

Naspers Limited’s update provides transparency on the ongoing Repurchase Program and the recent sale of Tencent shares by Prosus. Shareholders are encouraged to stay informed about these developments, and the company remains committed to its strategic initiatives in the global consumer internet market.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo