Prosus, the international multi-vertical marketplace operator, on Wednesday announced a plan to buy 45.4% of shares in its parent company Naspers.

“Naspers shareholders will be invited to tender their existing Naspers N ordinary shares for newly issued Prosus ordinary shares N,” the company said in an announcement.

“On completion, it is expected to more than double the Prosus free float’s effective economic interest in the group’s underlying assets, improving the stock’s liquidity, and place Prosus in the Top 20 of EURO STOXX 50 Index companies, improving its market index weightings.”

Amsterdam-based Prosus was spun off from South Africa-based parent company Naspers in 2019.

Reuters reported Naspers will continue to keep its controlling stake in Prosus, while the deal is expected to improve valuations for both companies.

“The share offer we have announced today will extend Prosus’s standing as Europe’s largest internet company,” Bob van Dijk, CEO of both companies said.

The deal is expected to be implemented in the third quarter of 2021.

In a weekly update of share purchase program, Prosus said it purchased 351,501 ordinary shares of Naspers at an average price of ZAR3,276 per share for a total consideration of ZAR1.2 billion ($80.3 million U.S.) between 3 May and 7 May, 2021.

This is part of a share purchase program of up to $3.63 billion announced in November last year. The value is almost a quarter of what Prosus will receive on sale of two percent stake in its Chinese asset Tencent.

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