Naspers sells shares worth $2.6 billion to fund further investments
Africa’s largest company, Cape Town-based Naspers Ltd, which has operations in more than 130 countries and also owns DSTV, has raised an amount of $2.5 billion from institutional investors in a bid to help fund its investments into e-commerce companies.
According to a statement released by the company, some 18,2 million shares (representing less than 5% of the company's ordinary shares before the capital raising), were placed at R1 975 each ($137 each) in a bookbuild run by Citigroup Inc. and Morgan Stanley. The new stock is expected to start trading on 11 December 2015.
According to Naspers CEO Bob Van Dijk (pictured), most of the company's investments will go into different e-commerce models. Among the e-commerce investments in Naspers' sights is the Russian classifieds business, Avito, currently also Russia's largest classifieds site. Naspers said previously that it was looking to increase its stake in the company from 17.4 percent to 67.9 percent. The authorities of both affected countries have since approved the acquisition, which is anticipated to be finalised by the end of this year.