Naspers South Africa CEO, Phuthi Mahanyele-Dabengwa, has made headlines by selling a substantial R240 million worth of shares in the company. The sale, revealed in a Naspers statement via the JSE on Monday, has sparked debate and raised questions about executive stock transactions.
The Official Explanation
According to Naspers, Mahanyele-Dabengwa sold 42,305 Naspers N ordinary shares to “cover taxes and other related costs.” She also took delivery of the remaining 9,999 Naspers N ordinary shares. This explanation, however, has been met with skepticism by some observers who question whether it's the full story.
Details of the Share Options
The shares sold relate to various Naspers share options awarded to Mahanyele-Dabengwa over the past few years:
- 13,281 options awarded on 21 September 2020 (base cost: R2,827.88/share)
- 11,237 options awarded on 21 June 2021 (base cost: R3,040/share)
- 21,252 options awarded on 27 June 2022 (base cost: R2,348.69/share)
- 6,534 options awarded on 27 June 2023 (base cost: R3,261.28/share)
All these options vested between 2021 and 2025.
Market Reaction
The volume-weighted average price per share was R5,663.84. While Naspers shares were trading slightly lower at R5,567.58/share on Tuesday morning, they have more than doubled in value over the last three years. This significant growth makes the timing of the share sale particularly noteworthy.
The sale raises the broader question of whether executives should be required to provide more advance notice before buying or selling shares, particularly given their access to inside information. Some argue that this could help level the playing field for general shareholders.
Stay tuned to Newsrpt.com for more updates on this developing story.