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Posts Tagged ‘Naspers’

Cybernuts, be happy that SPH not so smart

In Internet, Media on 25/03/2018 at 5:04 am

In 2001, Naspers, a South African publisher (It published the ST for the apartheid regime) bought a stake in a lossmaking Chinese start-up in the wake of the dotcom bust for US$32m.

This week it sold more than US$10bn of its shares in Tencent, the Chinese technology group, a sliver (2%age points) of a stake worth US$167bn which it acquired in 2001 for “peanuts”. It still has 31% of Tencent.

Well I’m sure a PAPPy, think Goh Meng Seng (OK, OK, he’s a covert PAPpy), would say Naspers was lucky. Well at the time the ang moh CEO of Naspers was in China looking at internet investment opportunities, so were Temasek, GIC and SPH senior executives.

They so unlucky meh? Remember Napoleon only wanted as marshalls (his most senior generals) generals who were lucky. He knew the importance of luck. Early in his career, he lost a battle but the unexpected arrival of a fresh division turned the battle around.

Or our GIC, Temasek and SPH executives juz stupid?

Btw, Naspers is trading at a 40% discount to its Tencent stake, despite having profitable operational businesses and other successful internet investments. Shareholders are unhappy.

 

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