Prosus AEX / Prosy OTC

Not sure if anyone is following this company. They are undertaking share buy backs by selling their crown jewel investment tencent (which is at 5 year lows and just inplementing their own buy back programme)

The strategy doesn’t make sense to me. You’d want to continue to hold your best asset and perhaps buy cen more at these levels rather than reduce it and have greater ownership of loss making businesses in your existing portfolio.

What am I missing here? Or just poor management execution.

They are selling Tencent to fund buyback, and end up with more Tencent on a per share basis.

But their percentage exposure of Tencent goes lower. The other stuffs they have seems high risk to me.

And non profitable