PROSUS NV SP/ADR - PROSY STOCK NEWS

Prosus N.V. (AEX: PRX) reported strong first-half results, with ecommerce revenues increasing by 41% to US$5.2bn. Group revenue rose 9% to US$16.5bn, despite a 37% decline in trading profit to US$1.4bn. The company anticipates profitability for its ecommerce portfolio by H1 of FY2025, supported by ongoing investments and a successful share buyback program that has repurchased US$5.8bn in shares. The balance sheet remains robust, with US$15.8bn gross cash. Prosus aims to improve profitability amidst ongoing market challenges.

Prosus N.V. addresses speculation regarding a potential acquisition of Tencent shares by a CITIC-led group. The company refutes the claims made by Asian Tech Press as untrue. Prosus confirms its commitment to an open-ended share repurchase program initiated in June, funded by orderly sales of Tencent shares. Both the Prosus and Naspers Boards express confidence in Tencent’s long-term prospects, asserting that the buyback initiative serves the best interests of their shareholders.

Prosus N.V. is exiting its investment in the Russian classifieds business, Avito Group, as part of its strategic move. The Group has signed an agreement with Radio Reklama Vologda LLC and Infrastructure Holding-2 LLC, for a total consideration of RUB 151 billion. The deal is expected to close in October 2022 and is now subject to all necessary regulatory approvals. Prosus holds a 99% interest in Avito, which had a net asset value of US$1,379.9 million and profits of US$160.3 million as of March 31, 2022. Proceeds from the sale will be used for general corporate purposes.

Naspers' subsidiary, Prosus, has entered an agreement to sell the Avito Group for RUB 151 billion. This move follows their intention to divest from Russian classifieds businesses, initially announced in 2022. The transaction will close in October 2022 and involves subsidiaries under Prosus. Avito Group's net asset value was USD 1.38 billion with profits of USD 160.3 million reported as of March 31, 2022. Proceeds from this sale will be used for corporate purposes. This transaction is classified as a category 2 transaction according to JSE Listings Requirements.

Naspers announced the termination of its proposed acquisition of BillDesk for US$4.7 billion after failing to meet conditions by the long stop date of 30 September 2022. PayU, a subsidiary of Prosus, secured regulatory approval from the Competition Commission of India on 5 September 2022, but other conditions were unmet. Despite this setback, Naspers remains committed to investing in India, having invested nearly US$6 billion in Indian technology since 2005.

Prosus N.V. announced the termination of its agreement to acquire Indian digital payments provider BillDesk for US$4.7 billion due to unmet conditions precedent by the long stop date of 30 September 2022. The acquisition was previously approved by the Competition Commission of India on 5 September 2022. Despite this setback, Prosus remains committed to the Indian market, having invested approximately US$6 billion in Indian tech companies since 2005, and continues to focus on growing its existing operations in the region.

Prosus N.V. held its annual general meeting, where all proposed resolutions were approved by shareholders. With 93.59% of share capital represented, key outcomes included the approval of directors' remuneration and the adoption of annual accounts for FY22, which saw a 24% revenue increase to US$37 billion. The meeting emphasized a share repurchase program supported by the sale of Tencent shares to enhance net asset value per share. Despite macroeconomic challenges, the company plans to focus on sustainable growth in ecommerce and fintech, while addressing impacts from the Ukraine war.

Prosus announced the acquisition of the remaining 33.3% stake in iFood from Just Eat Holding Limited for €1.5bn in cash, plus up to €300m contingent consideration. This acquisition will grant Prosus and Movile full ownership of iFood, an industry leader in Brazil's food delivery sector. iFood delivers around 70 million orders monthly, serving 330,000 restaurant partners and 200,000 delivery partners. The acquisition reflects Prosus's confidence in iFood's growth potential and its commitment to expanding in the Brazilian market.

Naspers, through its subsidiary Prosus, has announced the acquisition of the remaining 33.3% stake in iFood from Just Eat for €1.5bn in cash, plus a contingent consideration of up to €300m. This move solidifies Prosus and Movile’s complete ownership of iFood, which has grown into a leading platform in Brazil's food delivery sector, facilitating 70 million orders monthly. The acquisition reflects Prosus's commitment to long-term investment and confidence in iFood's growth potential, particularly in expanding its services across grocery and fintech.