By Matteo Castia
Naspers Ltd. and subsidiary Prosus NV said Thursday that each expect a sharp rise in earnings per share for fiscal 2021, and that both recommend their shareholders proceed with the previously announced voluntary share exchange offer between the two companies.
Naspers--a South African newspaper publisher turned technology giant and Africa's most valuable listed company--said it expects earnings per share for the year ended March 31 to rise between 70% and 77% year-on-year, or by 500 cents and 550 cents. EPS in fiscal 2020 came in at 718 cents.
"While navigating a global pandemic, the group benefited from its global perspective and diversified operations and executed on many key strategic initiatives that position it very well for continued long-term growth and value creation," Naspers said.
Dutch internet conglomerate Prosus said in a separate release that it expects EPS for the same period to rise between 92% and 99% on the year, or by 216 cents and 232 cents. EPS in fiscal 2020 came in at 235 cents.
Naspers and Prosus also said they deem the previously announced voluntary share exchange offer to be in the best interest of both companies' shareholders.
"It could provide significant value unlock for Prosus and Naspers shareholders. It will increase the Prosus free float materially, with expected growth in its overall trading liquidity, market index weightings and positive trading dynamics," they said.
On May 12, Naspers and Prosus said they were planning to launch a voluntary offer under which Naspers shareholders would be entitled to exchange ordinary shares for newly issued shares in Prosus.
Write to Matteo Castia at firstname.lastname@example.org
(END) Dow Jones Newswires