COMPANY NEWS IN BRIEF

Prosus reports better than expected profit

Prosus NV, the international investment arm of South Africa's Naspers, reported a better than expected net profit of US$7.45 billion for 2021 on Monday, driven by strong returns from its big stake in Chinese software giant Tencent.

However, the company reported an operating loss of US$1.04 billion at the companies it owns around the globe in online marketplaces, food delivery and educational software.

Analysts had seen net profit at US$4.63 billion for the 12 months ended March 31, up from US$3.66 billion in the same period a year earlier, according to Refinitiv data.

Prosus owns 28.9% of Tencent and is itself controlled by Naspers, Africa's biggest company by market capitalisation.

Of net profit, US$7.1 billion came from minority investments, dominated by the contribution from Tencent, which grew profit by 33%. Prosus said its operating loss was due to higher employee expenses, and that its businesses had performed well amid the coronavirus pandemic. - Nampa/Reuters

Facebook launches Clubhouse-like live

Facebook Inc on Monday launched its own Clubhouse-style live audio rooms and a way to find and play podcasts on its platform, marking a push into social audio by the world's largest social network.

Facebook's rollout of a potential Clubhouse rival follows the explosive early success of the invite-only live audio app, which became a hit as people stayed at home during the Covid-19 pandemic.

Facebook CEO Mark Zuckerberg was one of the Silicon Valley celebrities who have made appearances on the app, which recently expanded to Android users.

Facebook, which has said it wants to make audio a "first-class medium" on its platforms, joins Twitter Inc and messaging platform Discord which have already launched their own live audio offerings.

Spotify debuted its own version, "Greenroom," last Wednesday. Slack, Microsoft Corp-owned LinkedIn and Reddit are also working on similar products.

Public figures and certain Facebook Groups in the United States using iOS will be able to create live audio rooms, with up to 50 speakers and unlimited listeners. – Nampa/Reuters

Toshiba releases internal report

Japan's Toshiba Corp on Monday promised to drastically improve corporate governance and, ahead of a crucial shareholder meeting this week, released an internal report that had cleared management of wrongdoing.

An independent report published this month found the company colluded with government officials, while the company's internal report in February cleared management of accusations its pressured shareholders to back board appointments.

Chairman Osamu Nagayama will seek to retain his post at a shareholder meeting on Friday in the face of pressure from some shareholders to resign.

The release of the internal report on Monday could help persuade some that when Nagayama opposed shareholders, who called for the internal inquiry in March, he was acting in good faith.

Shareholder advisory groups Institutional Shareholder Services Inc and Glass Lewis have both recommended that Nagayama not be reappointed. Toshiba's No.2 shareholder, Singapore-based 3D Investment Partners also opposes his nomination. - Nampa/Reuters

Morrisons hoping for Clayton to raise offer

Shares in Morrisons surged by as much as a third on Monday on hopes that US private equity firm Clayton, Dubilier & Rice (CD&R) might raise its proposed offer for the British supermarket group or flush out other bidders.

Morrisons, Britain's fourth-largest grocer by sales behind market leader Tesco, Sainsbury's and Asda, said on Saturday that it had rejected a proposed 5.52 billion pounds (US$7.62 billion) cash offer from CD&R.

The approach underlines private equity's growing appetite for supermarkets in Britain, attracted by their steady cash generation and freehold real estate assets.

Morrisons said CD&R's offer of 230 pence per share, a 29% premium to Friday's closing price, "significantly undervalued" the group and its prospects.

Including net debt of 3.17 billion pounds, CD&R's offer price gives Morrisons an enterprise value of 8.7 billion pounds. - Nampa/Reuters

LegalZoom eyes over US$5 billion valuation

LegalZoom is aiming for a valuation of more than US$5 billion in its US initial public offering (IPO), marking the online legal services company's second attempt at a stock market listing, according to a regulatory filing on Monday.

The company, co-founded by former O.J. Simpson attorney Robert Shapiro, plans to sell a little more than 19 million shares priced at between US$24 and US$27 apiece, raising US$516 million at the top end of the range.

Glendale, California-based LegalZoom filed for an IPO in 2012 but later postponed the offering and withdrew it after two years.

LegalZoom was started in 2001 to help people draw up legal documents such as wills, incorporations and trademarks without lawyers and the fees that come with such advice.

It raised US$500 million in a funding round led by Francisco Partners and GPI Capital in 2018, valuing the company at US$2 billion.

The investment also included participation from one or more Franklin Templeton Investments funds and funds managed by Neuberger Berman Investment Advisers. - Nampa/Reuters