Naspers Ltd. (NPSNY) Is Undervalued

Naspers Ltd. (NPSNY) is a classic “sum of the parts” investment.

Naspers is selling for significantly less than the value of its individual parts.

The company is a nice way to own a diversified collection of international and emerging market assets.

The company began in 1915 as a South African publisher of newspapers and magazines. Today it has a $70 billion market capitalization. Over time it evolved from just newspapers and magazines into Africa’s leading pay TV operator. In addition, it now holds a number of equity stakes in leading internet businesses across a broad swath of emerging markets.  They include China, India, Brazil and Russia.

The most important aspect of Naspers is its 33% ownership in Tencent (TCTZF).  Tencent is a dominant internet company in China.  Tencent owns five of the top ten apps in all of China.  Its apps account for 50% of user time spent online in China.

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