The Prosus / Tencent Stocks Discount Situation | Summary and Q&A

TL;DR

Process is trading at a discount to NAV, offering potential value in owning Tencent through Process.

Key Insights

• ™️ Process is trading at a significant discount to its NAV, offering value investing opportunities.
• 😚 The company is taking steps to close the discount through strategic measures like selling Tencent shares and conducting BuyBacks.
• 👨‍💼 Understanding the growth potential of Tencent, the profitability of other businesses under Process, and the implications of investing in Chinese assets are crucial for investors.
• 👨‍💼 The market dynamics, tax implications, and uncertainties surrounding unlisted businesses under Process contribute to the valuation complexities.
• 🙃 Investors should carefully assess the discount, the potential for NAV growth, and the risks associated with owning Process for exposure to Tencent.
• 🈹 Utilizing strategies like tracking the discount to NAV, adjusting holdings based on the discount level, and considering the long-term growth prospects of Tencent can be beneficial for investors.
• 🖐️ The performance of Tencent, the scalability of its businesses, and the regulatory environment in China play a significant role in determining the value proposition of investing in Process.

Transcript

good day fellow investors process and sent Nas purses out but the discount is still there and this value investors if there is a discount there is value we look into it so let's immediately explain the discount if you look at process which is traded on the Amsterdam stock exchange and Johannesburg Stock Exchange now you see that the stock price is ... Read More

Questions & Answers

Q: Why is Process trading at a discount to its NAV?

Process's discount to its NAV may be attributed to various factors, including market sentiment, investor perceptions, and complexities in the company's structure.

Q: How is Process trying to close the discount?

Process is implementing strategies like selling Tencent shares, conducting BuyBacks, and focusing on increasing the net asset value per share to reduce the discount.

Q: What are the key considerations for investors looking to invest in Process?

Investors should evaluate the potential growth of Tencent, the profitability of other businesses under Process, the discount to NAV, and the risks associated with investing in Chinese assets.

Q: How do BuyBacks help in reducing the discount for Process investors?

By conducting BuyBacks, Process can decrease the number of shares outstanding, increase the net asset value per share, and potentially close the discount for investors.

Summary & Key Takeaways

• Process is trading at a discount to its NAV, allowing investors to potentially benefit from owning Tencent through Process.

• The company has been working to close this discount through various measures like selling Tencent shares and conducting BuyBacks.

• Understanding the discount, the potential growth of Tencent, and the other businesses under Process are crucial for investors.