Table of Contents
Key Points
- Prosus sold $743 million worth of shares in Trip.com as part of its strategy to optimize shareholder returns and streamline operations.
- Trip.com is still navigating post-pandemic travel recovery challenges, particularly in China, despite focusing on expanding services and boosting domestic market share.
- The sale reflects Prosus's broader goal of rebalancing its investment portfolio, indicating a shift in its approach to managing key assets.
Prosus N.V., the global Internet group led by South African billionaire Jacobus Petrus Bekker, popularly known as Koos Bekker, has fully divested its shares worth $743 million in Chinese online travel agency company Trip.com as part of its ongoing strategy to divest non-core assets and unlock shareholder value.
This transaction comes as Prosus continues to focus on trimming its vast portfolio and unlocking value, particularly in the Asia-Pacific technology sector, where the company has made substantial investments over the years to fund its ongoing share-purchase program.
Strategic divestment amid market conditions
Prosus sold more than two percent of Trip.com's shares for $743 million as part of its plan to unlock value and reduce its stake in the Chinese travel giant. The transaction gives Prosus liquidity to focus on higher-growth areas in its portfolio.
While Trip.com has expanded in domestic travel, it still faces challenges from the global post-pandemic recovery, particularly in China. Prosus's decision to sell its 14.5 million shares, acquired in 2001, aligns with its strategy to streamline investments and maximize returns.
Prosus implements strategic portfolio optimization
Prosus N.V., founded in 1997 under the leadership of Koos Bekker, has grown into a global consumer Internet group and one of the world’s largest technology investors.
The group, a division of the renowned South African multinational conglomerate Naspers, which is also run by Bekker, has a diverse international portfolio that includes investments in top fintech, social media, ed-tech, and food delivery system firms. Bekker’s 0.84-percent stake in Prosus is worth $588 million as of the time of writing.
Over the past year, Prosus has implemented several initiatives, including share buybacks and other divestment, aimed at optimizing its portfolio. With a strong focus on technology and digital transformation, Prosus remains committed to driving long-term value by reallocating capital towards areas with higher growth potential.
