Naspers seeks to bridge gap

Business | Tereza Cai 30 May 2019

Tencent's (0700) major shareholder Naspers announced it will spin off its internet business NewCo - which holds 31 percent of Tencent's shares for about HK$955.5 billion - and list it in Amsterdam on July 17.

The South African-based media company estimated that about 27 percent of NewCo's shares will trade to the public.

Shares of Tencent decreased by 1.11 percent to close at HK$322 yesterday.

The listing is part of Nasper chief executive officer Bob Van Dijk's effort to reduce the gap between the Cape Town-based company's market value and its Tencent stake.

Naspers sold 190 million Tencent shares last year, equal to 2 percent of the total issued share capital. It was the first time Naspers had reduced its holdings in Tencent since investing in the company.

Naspers said last year that it would not sell shares in Tencent for at least three years.

Meanwhile Tencent and ZTE (0763) signed 5G memorandum to reinforce their cooperation in 5G.

ZTE rose by 1.35 percent to close at HK$20.25 yesterday.

In other news, China Telecom's (0728) executive director and chief executive Ke Ruiwen said Huawei is its long-term partner, and the company is keeping a close watch on the Sino-US trade war, but has not been impacted by it. It will keep its budget of 9 billion yuan (HK$10.22 billion) for 5G development this year.

Ke added that China Telecom has started 5G trials in 17 cities last year.

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