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.