PROSUS NV (PRX)

Prosus trades at a 43% discount to NAV. 75% of net assets is Tencent, which is a quality, growing business that looks itself undervalued. Importantly, a catalyst to narrow the discount exists in the from an open-ended buyback program, which management seems very committed to. Management seems to target a reduction of the discount to under 35% of NAV which I expect them to achieve within two years. Even if NAV ex buyback remains unchanged during that period, NAV per share should increase by 5-10% because of the buyback and in combination with the discount reduction would result in an IRR 10-15% p.a. incremental to what the assets generate over that timeframe.