2019-09-11
CNN

A version of this first appeared in CNN Business' relaunched "Before the Bell" newsletter. Sign up here! Naspers, the South African media company that hit the jackpot with an early investment in Tencent, has spun out its 31% stake in the Chinese internet group via the listing of a new company in Amsterdam. Called Prosus, the company became the largest consumer tech company in Europe when it listed on Wednesday. It's now the second largest tech company in the region, after Germany's SAP. Investors are loving it. Prosus shares soared more than 25% in early trading, per my CNN Business colleague Hanna Ziady in London. Background: The Tencent stake has been a huge boon for Naspers, which paid just $32 million for it back in 2001. The investment is now worth $130 billion. But it's also caused headaches for the South African firm. Before the spin-out, Naspers accounted for 25% of the combined value of the 40 biggest companies on the Johannesburg Stock Exchange. T hat's forced investors to sell Naspers shares so they're not overly exposed to a single stock. The move to Amsterdam should help and investors in Europe won't mind either.

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