Naspers, South Africa’s largest company by market capitalisation, began its journey in the print media industry. It later expanded into pay-TV, launching M-Net, which became a household name across the continent. However, the company’s most transformative move came in 2001, when it acquired a 46.5% stake in Tencent, the Chinese social media and gaming giant.
Tencent operates two of China’s most popular social platforms: Weixin and WeChat. These multifunctional apps allow users to chat, shop online, and make payments—all within a single ecosystem. As of its latest results, Tencent reported 1.4 billion users across these platforms, with the vast majority based in China.
Over the years, Naspers has gradually reduced its stake in Tencent. In June 2022, it held 28.5%, and as of its most recent financial report, that figure now stands at 23.5%. The rationale behind this sell-down is to narrow the gap between Naspers’ market valuation and the net asset value (NAV) of its holdings. Holding companies often trade at a discount to NAV, and Naspers is no exception. According to the company, its NAV per share is R8,473.50, while its share price on 20 June 2025 was R5,235.40—reflecting a 38% discount.
Proceeds from the Tencent stake reduction have been used to expand Naspers’ e-commerce footprint. The company is focusing on lifestyle e-commerce businesses across Latin America, India, Europe, and South Africa. In the past 12 months, Naspers invested $7.8 billion in mergers and acquisitions, while divesting $2.6 billion from underperforming assets, including its stake in Superbalist. New management seem to be making good progress on its e-commerce businesses, the latest results show most of these businesses being cash flow and earnings positive.
However, this strategy is not without risk. Selling down a high-performing asset like Tencent to fund new ventures presents a significant challenge: replicating such outsized returns is notoriously difficult. Tencent has been a once-in-a-generation success for Naspers, and finding the next equivalent may prove elusive.
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