Chairman of e-commerce and Pay-TV giant Naspers, Koos Bekker, has resisted calls to spin off the company’s lucrative $132 billion stake in Tencent, a Chinese investment holding company whose subsidiaries provide media, entertainment, payment systems, smartphones, the internet mobile phone value-added services and operate online advertising services in China. saying wouldn’t make much commercial value for the company in the future.
Bekker argues that selling its stake now wouldn’t make significant commercial value in the long term.
South Africa-based Naspers is a $100 billion conglomerate with interests in newspaper publishing, e-commerce, and Pay-TV, but it owes much of its valuation to its stake in Hong-Kong listed Tencent.
Its stake in Tencent is worth 32 percent more than Naspers itself.
This gap has motivated investors to push for the sale of the company’s stake in Tencent. But Bekker is keen to resist such clamour, noting that it would make little commercial gains in the long-run for the firm.
“We started getting that advice from the day Tencent listed in 2004,” Bekker said at the company’s shareholder meeting in Cape Town. “Fact is: each time our board evaluated Tencent, we concluded at that moment it’s still the best use for our money. And today we see no reason yet to change.”