Naspers Ltd has its sights set on acquisitions as Africa\u2019s largest company by market value targets \u201csignificant investments\u201d for its $10 billion cash pile in the next couple of months, chief financial officer Basil Sgourdos said.<\/p>\n
\u201cIn the first half of this year we have done about $750 million in deals, and there are some near-term opportunities coming up,\u201d Sgourdos said by phone on Friday.<\/p>\n
\u201cWith markets correcting and valuations coming down, that favors companies with strong balance sheets, and that\u2019s what Naspers has.\u201d<\/p>\n
Naspers is working to reduce its exposure to Johannesburg\u2019s stock exchange as it seeks to narrow a valuation gap with flagship asset Tencent Holdings Ltd.<\/p>\n
The media and Internet company owns about 31% of the Chinese technology giant, yet the market values the stake at some $28 billion more than Naspers as a whole.<\/p>\n
Reducing the deficit has long been a priority for executives as they scour the globe for investment opportunities and work to turn more of its businesses profitable.<\/p>\n
Every year, Naspers looks at about 700 deals, and completes 10 to 15, said Sgourdos. \u201cThose are the ones that makes sense for a Naspers,\u201d he said.<\/p>\n
Naspers favors investing in classifieds, online retail and payments businesses. More recently it has started to put a lot of money into food delivery, where it sees \u201clots of runway.\u201d<\/p>\n
The company\u2019s cash pile has grown this year due to the sale of shares in Tencent and India\u2019s Flipkart.<\/p>\n
\u201cOur plan is to quickly and aggressively expand our reach, we are increasing our investment in the sector,\u201d said Sgourdos. This month, the company allocated another $400 million into building its position in Brazil and broader Latin America.<\/p>\n
Sgourdos was speaking after Naspers reported first-half earnings that missed analyst estimates.<\/p>\n
The company\u2019s shares closed 2% down on the Johannesburg Stock Exchange on Friday to trade at R2,763 a share, valuing the company at more than R1.2 trillion.<\/p>\n