Naspers, Prosus Plan to Remove Cross-Holding Structure to Continue Buyback
June 27 2023 - 2:57AM
Dow Jones News
By Joe Hoppe
Naspers and Prosus said Tuesday that they intend to remove their
cross-holding structure to allow the continuation of a share
buyback program at the Naspers level.
South African investor Naspers said the proposed transaction
will remove complexity created by the current cross-holding
structure while keeping the effective economic interests in the
companies the same, aligning the legal ownership of Prosus by
Naspers.
The transaction is expected to be carried out in the third
quarter of the year, and the approvals needed have already been
obtained from the South African Reserve Bank.
Postimplementation, Naspers will hold around 43% of the issued
Prosus N ordinary shares and Prosus free-floating shareholders will
hold the remaining 57%.
The share buyback--launched in June 2022--has been operating at
both the Prosus and Naspers level, to ensure that economic
interests remained in balance over time. As the repurchasing at the
Naspers level is being carried out through acquisitions by one of
its South African subsidiaries, there is a limit under South
African law of the amount of shares that can be repurchased.
The proposed transaction will remove this limitation and enable
the repurchasing to continue at the Naspers level.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
June 27, 2023 02:42 ET (06:42 GMT)
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