Could This Stock Really Double This Summer?
The largest shareholder of Chinese tech giant Tencent Holdings (OTC: TCEHY), with 28.9% of the company, is Prosus (OTC: PROSY), a European holding company, which itself is majority-owned by South African company Naspers (OTC: NPSNY). Since basically all of Naspers' net worth is tied up in its non-South African investments held by Prosus, they are pretty much the same set of assets, distributed across two different stocks.
As many know, both stocks trade at a big discount to the value of Prosus' Tencent stake. However, the Prosus/Naspers complex will be undertaking a large share swap this summer, which management believes will help close the gap, due to the idiosyncrasies of the two exchanges on which both stocks trade.
Also last week, Prosus released its fiscal 2021 earnings results (its fiscal year ends on March 31). The company's operating companies posted impressive growth in its non-Tencent portfolio, and management gave its own estimate for the value of these non-Tencent assets across classifieds, food delivery, digital payments, and education technology (ed tech).
Source Fool.com
