• ‚ÄčJohannesburg, 25 March 2019: Naspers has this morning announced that it is proposing to unbundle its internet interests outside of South Africa into a new company (Newco) and to separately list Newco on Euronext Amsterdam as a primary listing. Newco will have an inward secondary listing on the JSE.  Naspers, which will hold approximately 75% of Newco, will retain its primary listing on the JSE.  This proposed transaction is still subject to regulatory and shareholders' approval. Conditional approval has already been obtained from the National Treasury and the South African Reserve Bank.
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  • The proposed transaction, which follows the unbundling of MultiChoice, has been widely anticipated for some time as Naspers has looked to realize full value for the assets in the group and to address the issue that its heavy weighting in the FTSE/JSE Indices presents to both the company and investors.
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  • The index treatment for unbundling is long standing and well understood by index users.  Under this treatment, following the unbundling of Newco, Naspers would retain its inclusion in the FTSE/JSE indices, and its reduction in index weighting would be offset by the inclusion of Newco.
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  • In our view, the proposed transaction elegantly addresses the issue of Naspers' dominant position in the FTSE/JSE indices.  Investors will, if the proposed transaction proceeds as contemplated, have discrete access through the inward secondary listing of Newco, to Naspers'  offshore internet assets, and also access to Naspers' local assets and its controlling interest in Newco through Naspers' primary listing.  In both cases, South African investors buying these shares on the JSE will do so without using their foreign allowances. 
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  • "Naspers is a South African success story and the JSE believes that this step is important in unlocking the unique market dynamics facing this group. Local investors will now also have a choice as to how to access the Naspers opportunity which is positive for investment diversification and trading activity on the JSE.  We value the Naspers group as a client and look forward to continue serving them as they grow." says Nicky Newton-King.
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  • JSE contacts:
  • Zanele Morrison
  • Director: Corporate Affairs and Marketing
  • Email: zanelemo@jse.co.za
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  • Pheliswa Mayekiso
    Media and Internal Communications
    Email: pheliswam@jse.co.za
    Contact: +27 11 520 7495
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