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Definition

A collection of cash and near cash held by a company together with pre-arranged borrowing facilities which enable it to seek out acquisitions. Companies with a large war chest generally need to put that money to work or return it to shareholders. They can be accused of having a "lazy balance sheet" if they simply hold on to the funds. Prosus, a subsidiary of Naspers, and at its financials on 31st March 2020 it had $4,5bn in cash and undrawn facilities of around $2,5 bn which gave it a "war chest" of around $7bn (R115bn). It is well known to be on the lookout for suitable acquisitions in the IT and communications sectors.

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