Naspers CEO Bob van Dijk on planned listing of internet assets

South African multinational technology conglomerate Naspers is set to float its consumer internet businesses on the Euronext stock exchange in Amsterdam on July 17. The move comes as Naspers aims to unlock value for shareholders and reduce its outsized weighting on the Johannesburg Stock Exchange. Naspers CEO, Bob van Dijk, outlined the company's plans in a recent interview on CNBC Africa. The planned listing, which will see Naspers retain a 73% stake in the new company, is a significant development for the group. Van Dijk explained that the transaction serves two main objectives. Firstly, it provides a platform for future growth by attracting international investor capital and offering direct access to what is expected to be Europe's largest listed global consumer internet group. Van Dijk highlighted Naspers' unique portfolio, which includes leading internet companies in fast-growing markets such as China, India, Russia, Brazil, and more. The CEO emphasized that the move would help address the historical holding company discount caused by the outsized weighting on the JSE. Listing the international businesses on Euronext Amsterdam emerged as the most promising option after evaluating various alternatives. Van Dijk made it clear that Tencent, in which Naspers holds a 31.2% stake, would not be spun off or listed separately, as it remains a core asset. He expressed pride in Tencent's innovation and growth in the Chinese market, underscoring China's importance in Naspers' investment strategy. Naspers opted for Amsterdam due to its established presence in the city and the well-integrated capital markets in Europe. The Euronext exchange, with around 1300 listed issuers worth approximately 3.6 trillion euros, provides access to a deep investor base across Europe and other regions. The alignment of growth ambitions and market integration played a crucial role in the decision-making process. Additionally, the governance policies and regulations in Amsterdam were seen as similar to the JSE, ensuring a smooth listing process without added costs or organizational overhead. Van Dijk stated that the new group is expected to be included in various indices, such as AEX25, Stocks Europe 600, MSCI Developed Markets, and more. The CEO estimated that the incremental demand from passive investors could reach two to three billion dollars over the next year. While index inclusion is a benefit, Van Dijk emphasized that the primary driver for listing the new company was to attract new capital and address structural issues related to Naspers' market valuation. The CEO expressed optimism about the future prospects of the company, citing increased financial flexibility and optionality as potential outcomes. The timeline for the listing process was outlined in a circular issued by Naspers, with an Extraordinary General Meeting scheduled for June 28 in Cape Town. Shareholder approval would pave the way for the listing on Euronext Amsterdam and the secondary inward listing on the JSC on July 17. Despite uncertainties surrounding the exact timing of index inclusions, the company is confident in the benefits that the listing will bring. The move to list Naspers' internet assets in Amsterdam marks a strategic shift aimed at enhancing shareholder value, reducing market discount, and accessing new avenues for growth. With the support of global investors and a well-established market in Europe, Naspers is poised to embark on a new chapter in its corporate journey.