Company news in brief

Naspers spin-off Prosus surges on market debut

Shares in the spin-off of South African e-commerce group Naspers surged more than 25% in the first minutes of their market debut in Amsterdam yesterday.

Prosus comprises Naspers' global empire of consumer internet assets, with the jewel in the crown a 31% stake in Chinese tech titan Tencent.

Euronext had given an indicative price of 58.70 euro per share for Prosus, implying a market value of 95.3 billion euro (US$105 billion). The shares jumped to 76 euro on opening and were trading at 75 euro at 0719 GMT.

The spin-off in Amsterdam marks the end of an era for Naspers as it looks to move beyond the legacy of former chief executive Koos Bekker's prescient investment of just US$34 million in Tencent when it was a startup in 2001, one of the most lucrative bets in corporate history.

The stake in Tencent, the world's biggest videogame company and home to China's hugely popular WeChat social media platform, is now worth US$130 billion and has buttressed Naspers' rapid growth towards becoming Africa's most valuable listed company.

That would make Prosus the third-largest stock on the Amsterdam exchange after Shell and Unilever, and Europe's No.2 tech firm after Germany's SAP. – Nampa/Reuters

Ford makes big electric push

Ford Motor Co said on Tuesday it would launch eight electric vehicles in Europe this year, a key step in its target of achieving a majority of its overall sales from electric cars by the end of 2022.

The US automaker is pushing into electric vehicles at a time when car manufacturers around the world are racing to slash carbon dioxide emissions in order to comply with more stringent environmental standards in the European Union.

Ford's launches include electric variants of the Kuga and Puma SUVs and the Mondeo sedan. The automaker also plans to launch nine other electric vehicles by 2024 in Europe, including a new Mustang-inspired electric sports utility vehicle next year.

The automaker unveiled the models at the Frankfurt Motor Show in Germany, and said it would partner with six leading energy suppliers across Europe to provide home-charging wall box installation services.

The carmaker, like its rivals, has been facing stagnant demand and rising costs as it invests billions of US dollars in electric, hybrid and autonomous vehicles in efforts to boost sales. – Nampa/Reuters

Boeing plane deliveries down 72%

Boeing Co handed over around a quarter as many planes in August as it did a year ago, pushing total deliveries so far this year down more than 40%, as the worldwide grounding of its best-selling 737 MAX jet enters its seventh month.

Regular monthly numbers from the US planemaker showed it delivered 18 aircraft in August, down from 64 in the same period, a year ago.

In the eight months through August, deliveries totaled 276 aircraft, compared with 481 last year.

Chicago-based Boeing has not delivered any of its 737 MAX aircraft since the single-aisle plane was grounded worldwide in March after two fatal crashes in Indonesia and Ethiopia.

US airlines have removed the grounded jet from their flight schedules until December or early next year. – Nampa/Reuters

Hong Kong Exchanges proposes LSE takeover

The Hong Kong Exchanges and Clearing Limited has proposed a 31.6 billion pound (US$39 billion) takeover of the London Stock Exchange, it said yesterday, just weeks after the London bourse announced a plan to merge with data company Refinitiv.

"The board of HKEX believes a proposed combination with LSEG represents a highly compelling strategic opportunity to create a global market infrastructure leader," the Hong Kong exchange said in a statement.

The proposed transaction would only go ahead if the LSE's proposed takeover of Refinitiv does not proceed, it said.

Hong Kong Exchanges already has a base in London as owner of the London Metal Exchange. The LSE has long sought to bolster its footprint in Asia and recently launched a link with Shanghai.

London Stock Exchange Group Plc confirmed Hong Kong Exchanges and Clearing Limited had made an unsolicited, preliminary and highly conditional proposal to buy the bourse operator.

"LSEG remains committed to and continues to make good progress on its proposed acquisition of Refinitiv Holdings," the company said in a statement. – Nampa/Reuters

Cathay Pacific to cut capacity

Cathay Pacific Airways Ltd said yesterday it would cut capacity for the upcoming winter season after reporting an 11.3% fall in passenger numbers in the month of August as anti-government protests in Hong Kong hit demand.

The airline said inbound traffic to Hong Kong in August had fallen by 38% and outbound traffic by 12% compared with the previous year, and it did not anticipate September would be any less difficult.

The Hong Kong airline has become the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations that have plunged the former British colony into a political crisis.

Cathay chairman John Slosar last week announced plans to step down in November, less than three weeks after CEO Rupert Hogg left amid mounting regulatory scrutiny.

Cathay said demand for premium class travel had fallen more significantly than for leisure travel, with demand from mainland China and Northeast Asia severely hit, although Australia and New Zealand were more positive. – Nampa/Reuters