The boss of SoftBank admits some investors think of a “Masayoshi Son discount” when trying to value the Japanese tech group. By that token, Naspers must have a “Koos Bekker discount”. A powerful founder looms large at the South African group, too. Listing a big chunk of a portfolio valued at more than $150bn in Amsterdam should help narrow the gap. Big problems will remain.
Naspers’ investment in Chinese internet giant Tencent transformed it from an unknown publisher to a tech specialist. The parallel with SoftBank, a pioneering backer of Alibaba, is inescapable. Both were early investors in small Chinese companies and were handsomely rewarded.
The problem born of this success is persistent discounts. These valuation gaps reflect conglomerate structures and corporate governance weaknesses. Mr Son seems to call all the shots at SoftBank. Naspers is controlled by two opaque holding companies reportedly linked to Mr Bekker and other bosses.