Naspers effective interest in Facebook & Major Share Split of Face Book IPO

A summary received for good understanding & list of the main players


"In the Facebook IPO initial filing, DST Mail.ru’stake 5.4% which would equate to $4.05bn to $5.4bbn assuming a valuation of between $75bn-$100bn which Facebook is expecting the company to be valued. Mail.ru’s stake is up from 2.28% disclosed late last year. They have bought in the market through Sharepost, mainly from Facebook employee’s keen to cash in their stock. Mail.ru valued their stake at $1.48bn implying the latest valuation would give an uplift of between $2.57bn - $3.92bn. Naspers share of this uplift is $700m - $1.1bn or in ZAR, R5.6bn – R8.8bn. This is 3.4% to 5.4% of the current market cap. The share is up 4.38% since the disclosure, which is in the expected range of my uplift calculations.

Facebook valuation appear very steep though. At the top end of the placement range, the company trades at a price to revenue of 27x CY2011 revenue of $3.7bn, and price to earnings ratio of 100x 2011 net income of $1bn. Expectations are for profits to double in CY2012 which gives a forward PE of 50x. The company does not intend to pay any dividends in the foreseeable future. The principal purposes of the initial public offering is to create a public market for the stock and enable future access to the public equity market. In the short term they intend to use the net proceeds from the initial public offering for working capital and other general corporate purposes but do not currently have any specific uses of the net proceeds planned. Additionally, they intend using a portion of the proceeds for acquisitions of complementary businesses, technologies, or other assets but have no commitments with respect to any such acquisitions or investments at this time.

Facebook Top Ten Shareholders

1. 28.4% Mark Zuckerberg, Co-founder and CEO. Retains 56.9% voting interest.
2. 11.4% Accel Partners, Venture capital funder
3. 7.7% Dustin Moskowitz, Co-founder
4. 5.4% Mail.ru, Russian firm
5. 5% Eduardo Saverin, Co-founder
6. 4% Sean Parker, Facebook first president
7. 2.5% Peter Thiel, Angel Investor, Co-founder of Pay-pal, now Global Macro Hedge fund manager
8. 1.5% Greylock Partners, Venture capital
9. 1.5% Meritech Capital Partners, Venture capital
10. 1.5% Microsoft, Software Company


REF : Farai Mapfinya Equity Analyst, Sanlam Private Investments




Kind Regards




Steven



Steven Morris Chartered Accountant (SA)
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