Naspers (JSE:NPN, Financial) was an early investor in Tencent, a leading gaming and social media franchise in China, and it currently owns 29% of the company. Naspers has subsequently added additional high-quality businesses to its portfolio, but Tencent remains approximately 85% of our estimate of the company’s fair value. In 2019, Naspers created Prosus to hold its Tencent stake along with other non-South-African assets. As Naspers shareholders, we received shares in the newly established Prosus. During the recent quarter, Naspers and Prosus announced a tender program in which we could receive Prosus shares in return for our Naspers shares. We elected to make this exchange as we believe Prosus offers a better domicile (the Netherlands), more liquidity, a better tax position and a management team that is strongly advocating for moving the weight of ownership to Prosus. Following the tender, we decided to sell the remainder of our Naspers shares to purchase more Prosus shares.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund third-quarter 2021 letter.
