Targeting profitability in its core business within two years, Netherlands-headquartered marketplace operator Prosus NV could shed additional assets.
“Prosus may sell some businesses or list them,” said CEO Bob van Dijk, BusinessLive reported.
Citing market fundamentals, including inflation, as reasons, Prosus is pulling out of Asian and Latin American markets.
Among all segments, the company’s core classifieds unit was the only one with positive EBITDA and a trading profit during the financial year to March (FY2023), according to its latest financial results. It recorded a trading profit of $69 million U.S. in FY2023, up from $65 million in the 12 months to March 2022.
The divestment decision follows recent shareholder approval to unwind Prosus’ cross-holding structure — where a publicly traded corporation owns stock in another publicly traded company — with its South Africa-based parent company Naspers. This will be implemented through a share-buyback program.
Management expects that this will reduce the discount at which shares in the two companies are traded relative to their net asset value.
Source: Prosus