Naspers spends $1.2 billion on share buybacks in less than 5 months

Timilehin Adejumobi -
Key Points
  • The company repurchased 5.38 million shares for R22 billion ($1.2 billion), reducing free float and boosting shareholder returns.
  • Naspers sold 30.7 million Prosus shares, raising R22.4 billion ($1.17 billion) to finance the buyback without affecting financial stability.
  • Led by Koos Bekker, Naspers targets value creation through buybacks, addressing its Tencent discount while investing in South Africa’s e-commerce growth.

Naspers, the multinational internet and media group led by South African billionaire Koos Bekker, has reaffirmed its commitment to delivering value to shareholders. Over the past 140 days, the company spent R22 billion ($1.2 billion) repurchasing 5.38 million of its shares—one of the largest buybacks in the history of the Johannesburg Stock Exchange (JSE).

This repurchase effort is part of Naspers’ overarching strategy to enhance shareholder returns. Between Aug. 22, 2024, and Jan. 9, 2025, Naspers acquired its shares at prices ranging from R3,468.93 ($181.52) to R4,510.97 ($236.05) per share.

Naspers commits to share buyback strategy

The transaction accounts for 3.01 percent of the company’s issued N ordinary shares, with the number of treasury shares increasing from 6.75 million to 12.12 million during this period. As of Jan. 9, 2025, 30.32 million shares, representing 16.99 percent of the company’s outstanding shares, remain available under the current buyback program approved by shareholders.

The buyback initiative reflects Naspers’ strategic focus on reducing its free float, consolidating value, and addressing the discount on its Tencent stake. This effort follows a 2021 share swap arrangement that allowed Prosus, its Amsterdam-listed subsidiary, to acquire 45 percent of Naspers. While the arrangement aimed to reduce the valuation gap tied to Tencent, it fell short, leading to the current open-ended buyback approach.

To finance the program, Naspers raised R22.4 billion ($1.17 billion) by selling 30.7 million shares in Prosus N.V. The proceeds have been allocated towards the buybacks, a move the board assures will not compromise the company’s financial health. Naspers maintains sufficient assets, working capital, and resources to meet obligations over the next 12 months.

Naspers balances growth, shareholder value

Under the visionary leadership of Koos Bekker, Naspers has maintained its position as a key player in the global internet space while continuing to invest in South Africa’s growing e-commerce sector.

Bekker, who has a net worth of $2.8 billion, has been instrumental in steering Naspers’ evolution since taking over as CEO in 1997. He currently holds a 0.93-percent stake (1,687,887 shares) in Naspers and a 0.93-percent stake (19,646,498 shares) in Prosus N.V.

By reducing its free float and boosting per-share value, Naspers is delivering tangible results for shareholders. Its ability to balance financial discipline with innovation positions it as a transformative force in the global internet landscape.