Naspers R28 billion War Chest Likely to Ramp Up Acquisitions Talk

Naspers initially invested in August 2012 and its cumulative investment to the point of sale amounts to $616 million.

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Naspers future cape town
Naspers future cape town (Photo Credit: timthumb)

Soon market commentators will be drawing up Naspers’, Africa’s largest internet company, shopping list in the next few months.

Sitting on R28 billion and eager to invest in startups disrupting various markets, Naspers may find it attractive to buy a big firm or two.

The sale of Flipkart provides Naspers with a R28 billion war chest and it seems as if the Internet giant is planning to snap up more assets in classifieds, online ecommerce payments platforms, online food ordering, and travel market.

It will make sense for Naspers to spend the proceeds its shareholding into those markets.

Naspers already owns lucrative stakes in OLX (classifieds), PayU (online ecommerce payments platforms), Swiggy (online food ordering) and MakeMyTrip (travel website).

Naspers has sold its shareholding in Flipkart and gained access to a war chest that will give it the funds to continue with more acquisitions and support organic growth in its new buys.

On Wednesday, Naspers announced the sale of its 11.18% stake in Indian ecommerce company Flipkart, to US-based retailer Walmart for $2.2 billion.

Naspers initially invested in August 2012 and its cumulative investment to the point of sale amounts to $616 million.

The South African-based Internet conglomerate said the proceeds will be used to reinforce Naspers’ balance sheet and will be invested over time to accelerate the growth of Naspers’ classifieds, online food delivery and fintech businesses globally, and to pursue other exciting growth opportunities when they arise.

“Our decision to sell is consistent with our strategy to realise value from the businesses we help to build. The time has come for us to wish the team well for the next chapter of their story, and we are excited about the future of OLX, PayU, Swiggy and MakeMyTrip,” said Bob van Dijk, Group CEO, Naspers.

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