Naspers Sells $750 Million of Overseas Debt to Fund Acquisitions
Stock Chart for Naspers Ltd (NPN)
Naspers Ltd. (NPN), Africa’s largest media company, sold $750 million of seven-year bonds as it seeks funds to pay for acquisitions in emerging markets.
The senior unsecured notes were sold to yield 6 percent, or 4.02 percentage points more than similar maturity U.S. Treasuries, according to data compiled by Bloomberg. It was the company’s first overseas issue since it raised $700 million in 2010 with a sale of seven-year bonds that yielded 6.375 percent, or 4 percentage points more than Treasuries.
Naspers will use the proceeds for “future acquisitions and the repayment of existing credit facilities,” it said in a July 2 filing to regulators. The company, based in Cape Town, is expanding its Internet business through acquisitions to take advantage of faster-growing emerging markets.
Naspers plans to add to a portfolio of overseas assets that includes a 34 percent stake in Tencent Holdings Ltd., China’s biggest Internet company, and 29 percent of Russian social-media and gaming provider Mail.ru Group Ltd. (MAIL)
Naspers was one of three investors in a $200 million funding round for Flipkart Online Services Ltd., the Indian online retailer said yesterday.
The stock rose 1.6 percent to 770 rand today in Johannesburg. Naspers has advanced 42 percent this year, the best performer after Mondi Group in the FTSE/JSE Africa Top40 (TOP40) index of South Africa’s largest companies, which has increased 3.7 percent.
Moody’s Investors Service rates Naspers Baa3, the lowest investment grade. The South African company had cash and cash equivalents of 15.8 billion rand for the year ending March compared with 9.8 billion rand a year earlier.