Prosus Gets a Recode: Untangling the JSE’s Biggest Tech Puzzle

If there's one thing accounting students know well, it's consolidation…both in financial statements and in strategy. And few companies illustrate that better than Naspers and Prosus, which are now undergoing their own version of a strategic year-end adjustment.

With new leadership and a tighter structure, South Africa’s tech investing giant is making some changes. Here’s what that means for business, finance pros, and aspiring CAs.

We know it’s exam season, so we’ve kept this one short and sweet…( we also need to study)

Fun Fact
At one point, Naspers’ stake in Tencent was worth more than the entire Johannesburg Stock Exchange, making it arguably the best investment in South African corporate history.

From Conglomerate Confusion to Focused Force

When Prosus was spun out of Naspers in 2019, the goal was to list its international tech assets (like the Tencent stake) on a global stage and reduce the valuation discount Naspers faced on the JSE. But things got complicated fast.

Naspers owned a majority of Prosus, and Prosus in turn held most of Naspers’ crown jewel: the Tencent investment. This circular ownership, known as a cross-holding structure, created a loop where Naspers owned Prosus, which owned Naspers, and so on.

We know, it doesn’t make much sense…

The result? The market found it hard to value either company cleanly, leading to persistent share price discounts and frustrated investors. Instead of unlocking value, the structure trapped it in a web of complexity.

Complexity can be costly. In accounting and strategy, clarity and simplicity often drive better outcomes.

Under CEO Fabricio Bloisi, the group plans to untangle this. The long-term aim is to unwind the cross-holding structure, simplify the group’s legal and financial architecture, and operate as a more unified unit. That means less duplication, clearer reporting lines, and a structure that both markets and management can navigate with ease.

Capital Allocation Gets a Refresh

The group is moving to become more “capital disciplined,” and this shift is more than just a boardroom buzzword. With Bloisi doubling down on core assets ( payments, classifieds, and food delivery), there's a growing focus on measurable returns on investment and divesting from non-performing ventures.

This aligns closely with the concept of impairment testing, where you ask whether the assets on your books are actually generating future economic benefits. For us students, it’s a reminder that IFRS is more than just theory.

Good capital allocation means letting go of “nice-to-have” investments and prioritising cash-generating ones.

Culture Eats Strategy for Breakfast

Bloisi isn’t just moving the charts but he's also changing the cultural DNA. At a recent strategy day, he outlined a new operating model focused on accountability, entrepreneurial thinking, and decision-making speed.

For finance professionals, this raises questions about performance metrics: How do you measure and incentivise innovation without compromising control? How do internal controls adapt to faster-moving, flatter hierarchies?

Finance isn't just about reporting, it's about building the systems that support culture and strategy in tandem.

Roundup

The Naspers-Prosus shake-up is a powerful lesson in corporate architecture, capital stewardship, and cultural alignment.

For aspiring CAs, it’s a reminder that strategy and structure are inseparable. Whether you're analysing cross-holdings, testing for impairment, or designing performance frameworks, the real value lies in making complexity actionable and information meaningful.

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