Cape Town - Fin24 user Derek A Harris has provided an update on Naspers [JSE:NPN] BEE shares, which he says are putting up a good show.
Responding to a call to weigh in on Fin24's weekly SHARE WATCH, he writes:
Good things seem to be happening with Naspers' two BBBEE share schemes, Welkom Yizani for Media24 and Phuthuma Nathi for MultiChoice.
1. NPN sold most of MWeb last year and is sitting with cash in its war chest.
2. Novus listed on the JSE last year.
3. Novus acquired a digital printing business and is big time into toilet paper manufacturing, making them less dependent on newspaper and magazine printing. It holds its own in the printing of educational material and ballot papers for African countries.
4. The Novus CEO and board of directors changed.
5. Naspers CEO Bob van Dijk appointed a top man to jack up Media24's e-commerce business.
I think all of this bodes well for both schemes.
The BBBEE lock-in period for both Phuthuma Nathi and Welkom Yizani expires this year, so I expect a lot of corporate action on this front such as:
1. Listing both on the JSE BEE board;
2. Listing on an alternative exchange;
3. Listing on the main JSE board; and
4. Any combination of the above.
I expect Koos Bekker to unlock massive value for the shareholders in the next few months.
* Fin24 is part of Media24, a subsidiary of Naspers.
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