Naspers CEO Bob van Dijk on Amsterdam listing

Naspers, a global tech leader, has recently announced its plans to list its internet operations in Europe through a primary listing on the Euronext exchange. The move is aimed at attracting more global technology investors and unlocking substantial capital for the company. CNBC Africa recently interviewed Naspers CEO Bob van Dijk to delve deeper into the rationale behind the Amsterdam listing and the future growth prospects for the company. Van Dijk highlighted the remarkable growth Naspers has witnessed over the past five years, with the company's share in the JSC SWICS index soaring from 5% to almost 25%. This significant expansion has not only benefited investors but has also contributed to the overall value creation for stakeholders in South Africa. However, the substantial increase in Naspers' size on the exchange has posed challenges, including the need for some institutional investors to sell shares due to concentration limits. Discussing the Amsterdam listing, Van Dijk emphasized the importance of diversifying Naspers' investor base by attracting global tech investors to the company's assets. He cited the Euronext exchange's size and reputation, along with Amsterdam's historical significance as a home for Naspers, as key factors driving the decision. The listing requirements of Euronext and the JSE were found to be similar, facilitating a seamless execution of the transaction without undue complexity or cost. One intriguing aspect of the listing structure is the option for shareholders to receive more shares in Naspers instead of shares in the newly listed entity, NU.CO. This flexibility is designed to accommodate the preferences and tax implications of individual investors, particularly those in Africa. Van Dijk stressed that the primary listing of the internet assets on Euronext is not a spin-out but a value-creating opportunity for current shareholders. Regarding the performance of Naspers' internet segment, Van Dijk clarified that the listing is intended to capitalize on the significant growth potential of the e-commerce, payments, and food delivery businesses. He expressed confidence in the upside and future growth prospects of these assets, underlining the value proposition for shareholders participating in the capitalization issue. Addressing concerns about asset depreciation and amortization, Van Dijk reassured that the company's internet assets typically have asset-like businesses with stable depreciation profiles. He emphasized that the new listing does not signify a departure from Naspers' core strategy of accelerating growth in key segments and deploying capital efficiently. In conclusion, Van Dijk reaffirmed Naspers' commitment to identifying tech-driven solutions that address substantial societal needs. The company's focus on sectors like classifieds reflects a broader vision of promoting sustainability through the reuse of existing goods. As Naspers continues to navigate the dynamic tech landscape, it remains dedicated to fostering innovation and driving value for its stakeholders and the global tech community.