Yesterday, Naspers and Prosus announced their intention to eliminate their cross-holding structure to proceed with a successful share buyback program at the Naspers level.
This proposed transaction is expected to reduce the complexity caused by the current cross-holding structure while maintaining identical economic interest in each of the respective companies and aligning the legal ownership of Prosus under Naspers.
Post-transaction, Naspers will retain around 43% of the Prosus N ordinary shares issued, and Prosus free-floating shareholders will own the remaining 57%.
The share buyback initiative, launched in June 2022, has been conducting operations at both Prosus and Naspers levels to guarantee that economic interests remained well-balanced over time. However, repurchasing activities at the Naspers level have faced limitations under South African law. Since one of its subsidiaries in South Africa manages such acquisitions, there is a restriction on the number of shares that can be purchased.
The strategy that Naspers and Prosus plan to implement will eliminate all restrictions and enable repurchasing activities to continue at the Naspers level without any limits.