Prosus: A Hungry Play for Tech Investors in a Volatile Market

The tech sector has been a rollercoaster lately, but one name stands out as a rare compounder with 15%+ CAGR potential and a 35% NAV discount—Prosus. This Dutch multinational isn't just a bystander; it's making bold moves in food delivery and leveraging its Tencent-driven valuation upside to create long-term value. Let's dig in.

Why Prosus? The Tencent Connection & Hidden Growth

Prosus isn't just a holding company—it's a powerhouse with a 28.9% stake in Tencent, the Chinese tech giant. Tencent's growth, even in a slowing market, fuels Prosus's valuation. The math is simple: Tencent's stock (HKEX: 0700) has grown at a 15%+ CAGR over the past decade, and Prosus's stake is a $40 billion+ asset. But here's the kicker—Prosus trades at a 35% discount to its net asset value (NAV), meaning investors get this Tencent exposure plus other high-potential assets for pennies on the dollar.

The JET Acquisition: A Meal Deal with Synergy Spices

Prosus just dropped a $4.3 billion bombshell by acquiring Just Eat Takeaway.com (JET), Europe's leading food delivery platform. This isn't just a bid—it's a strategic pivot to dominate the $150+ billion global food delivery market. Let's break the synergy math:

1. Operational Efficiency: Combining JET's 61 million customers with Prosus's iFood (Brazil's top food delivery app) creates $200+ million in annual cost savings through shared tech and logistics.
2. Market Expansion: JET's strongholds in the UK, Germany, and Netherlands pair with Prosus's footprint in Brazil, India, and Africa. This global scale unlocks cross-border growth.
3. Tech Integration: Prosus's AI-driven route optimization and personalized recommendations (what made iFood Brazil's favorite) will turbocharge JET's GTV (Gross Transaction Value).

The acquisition is on track, with regulatory approvals secured in Canada, the UK, Austria, and Belgium. A 95% shareholder acceptance threshold is achievable by late 2025, locking in NAV accretion from day one.

NAV Accretion: The Undervalued E-Commerce Engine

Prosus's e-commerce assets—think MercadoLibre (MELI) in Latin America, Foodpanda, and its Tencent stake—are undervalued. Here's why:

• JET's NAV: JET's $26.3 billion GTV and $460 million EBITDA are worth far more than its $4.3B acquisition price. Prosus's expertise in scaling platforms (e.g., iFood's 50% market share in Brazil) will boost margins.
• Tencent's Hidden Upside: Tencent's cloud business and digital payments are undervalued in Prosus's NAV. If Tencent's valuation improves (as it did in 2023), Prosus's NAV jumps—no shares needed!

The Investment Thesis: Buy Now, Eat Later

Prosus is a compounder in disguise. Here's why to act now:

1. Timing is Everything: The JET acquisition's synergies are priced in at $4.3B, but the market hasn't yet factored in the 2025+ growth from tech integration and margin expansion.
2. Valuation Safety Net: At a 35% NAV discount, Prosus is a “margin of safety” stock. Even if tech markets stay volatile, Prosus's assets are worth more than the stock price.
3. Dividend Catalyst: Prosus's cash-rich balance sheet (no debt from the JET deal!) could lead to special dividends post-acquisition, rewarding shareholders.

Risks? Yes. But the Appetite Outweighs the Risks

• Integration Hurdles: Merging JET and Prosus's tech stacks could strain resources, but their track record with iFood is a good omen.
• Regulatory Scrutiny: Antitrust agencies might question market dominance, but the European focus (where JET is already profitable) limits this risk.
• Tencent's Volatility: China's tech sector is unpredictable, but Prosus's diversified holdings act as a buffer.

Final Bites: This Stock is a Meal Ticket

Prosus is a once-in-a-decade play—a tech stock with Tencent's rocket fuel, a $4.3B accretive acquisition, and a 35% NAV discount. If you're tired of chasing overhyped AI stocks, here's a real compounder with $20+ upside potential.

Action Alert: Buy Prosus (AMS: PRX) now. The JET deal's completion by year-end 2025 will trigger a re-rating, and the Tencent stake is a tailwind. This isn't just a stock—it's a meal deal for your portfolio.

Bon appétit!