Prosus represents a unique investment opportunity as a technology investment company that was spun out of Naspers Limited and listed on the Euronext exchange in 2019. Prosus has a 23% stake in Tencent, which equates to around 80% of its net asset value.
Prosus gives investors a discounted entry point into Tencent, one of the largest and highest-quality businesses in the East, as Prosus trades at a discount to its net asset value.
Bears
Prosus’ value is tied to Tencent’s performance, which it has little control over.
Prosus is a consumer internet group with listed and unlisted platforms across 100 countries. Around 80% of Prosus’ net asset value is derived from its Tencent holdings, the world’s largest game publisher and operator of WeChat, China’s super app with 1.3 billion users. Prosus has approximately a 23% stake in Tencent. The rest of the group’s businesses and investments are organized into classifieds, food delivery, payments and fintech, and edtech. This includes ownership of iFood, Brazil’s largest food delivery app, and a 25% stake in Swiggy, the second-largest delivery platform in India.In 2019, Prosus was spun out of South Africa-based parent company Naspers Ltd and listed on the Euronext exchange. Naspers holds approximately 75% of Prosus’ shares.