Naspers targets R5.4bn for tech push

Johannesburg, 27 Feb 2007

JSE-listed media giant Naspers aims to raise R5.36 billion to exploit new technologies and print media in emerging markets.

In a note to shareholders this morning, the media giant says it will raise the equivalent of $750 million through a private placement to institutional investors. This, it says, forms part of its strategy of focusing on investment opportunities in its core platforms of pay television, Internet, mobile and print media within emerging markets.

"Naspers is well placed to develop investment opportunities in new media services and content businesses such as user-generated content platforms, communication and entertainment delivered via mobile and PC platforms," it told shareholders.

The news sent its shares down 2.51% in early morning trade to change hands at R182.80. The company's shares closed at R187.50 yesterday. Its 12-month high is R189.84 and its 12-month low is R109.

Emerging markets

The Johannesburg-based media organisation recently made several investments in emerging markets. Between 2001 and 2006, Naspers acquired stakes in seven media and technology-related companies and is pursuing several other opportunities, it says.

Proceeds from the capital-raising exercise will go towards extending its international investment strategy, as well as replenishing internal resources used to acquire, among others, Russian Internet portal Mail.ru.

CEO Koos Bekker says the "capital-raising will strengthen our ability to participate as a strategic partner in media companies across the emerging markets".

The company will raise the cash mostly though a listing of shares on the Johannesburg bourse. Citigroup Global Markets has been nominated as bookrunner to establish pricing of the shares, which is expected to be announced on 8 March.

Trail of acquisitions

The company recently acquired an interest in China-based Internet and mobile value-added service provider Tencent. It also bought content security firm CryptoTec, to create the third-largest player in the conditional access market.

Naspers has also purchased a 25% interest in Tixa, a privately-held Chinese company, which operates an Internet contextual advertising platform targeted at Chinese SMEs.

Locally, the company will acquire Johnnic Communications' 38% interest in M-Net and SuperSport. The stake, to be purchased for around R3.145 billion, will enable Naspers to consolidate its holdings as television enters a new era.

This year, Naspers bought a 30% stake in Mail.ru and a 30% interest in instant messaging service MXit Lifestyle.