Kold Investments published an open letter to the Prosus board, arguing the company should focus on NAV-per-share accretive buybacks and accept its role as a decentralized holding company dominated by its Tencent stake. The investment firm, a Prosus shareholder, criticized management's pursuit of a centralized global tech identity as a self-deceptive strategic miscalculation that diverts resources from buybacks. The letter, titled 'The Prosus Emperor's New AI Clothes,' uses a fairy tale to illustrate what Kold views as a misalignment with shareholder interests. Kold Investments believes the lowest-risk path to maximizing net asset value per share is to continue arbitraging the NAV discount through maximum buybacks while letting decentralized businesses remain independent.
Prosus N.V.Kold Investments urges Prosus to maximize buybacks, which is positive for NAV per share and shareholder returns.
Tencent Holdings Ltd