Net1 Acquires 2.4 Million Shares Following Net Settlement With BEE Partners
10 Juni 2014 - 5:15PM
Marketwired
Net1 Acquires 2.4 Million Shares Following Net Settlement With BEE
Partners
JOHANNESBURG, SOUTH AFRICA--(Marketwired - Jun 10, 2014) - Net 1
UEPS Technologies Inc. ("Net1" or the "Company")
(NASDAQ:UEPS)(JSE:NT1) today announced that it has purchased
approximately 2.4 million shares of the Company' common stock from
its BEE partners under its December 2013 Relationship Agreements,
as amended ("Relationship Agreements"). These agreements gave the
Company the right to require its BEE partners to early settle their
loan obligations to the Net1 subsidiary which advanced the loans
for the purchase of their Net1 shares, in the event that Net1's
share price ever traded above ZAR120.00 on the JSE Limited (or the
South African Rand equivalent on the Nasdaq). Such settlement could
occur either through the sale of Net1 shares or the use of other
financial resources.
The Company's share price exceeded this level on June 5, 2014
and the Company gave notice for the early repayment of the loans.
The BEE partners elected to effect this repayment through the sale
of a portion of their Net1 shares and the Company elected to
purchase the shares itself to reduce the dilution effect of the
original BEE issue.
Accordingly, the Company has repurchased approximately 2.4
million shares from its BEE Partners at the contractually
determined 30 day volume weighted average price of ZAR109.98 (or
$10.24 at the appropriate exchange rate) per share. The settlement
amount has been applied to repay, in full, the BEE loans and
related interest obligations under the Relationship Agreements.
Net1's outstanding share count has accordingly reduced by 4.8%
from 50,183,342 to 47,755,220 shares. Net1's BEE partners may not
sell their remaining 1,971,878 shares of Company common stock for a
period of five years, except as permitted under the Relationship
Agreements.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that
leverage its Universal Electronic Payment System, or UEPS, to
facilitate biometrically secure, real-time electronic transaction
processing to unbanked and under-banked populations of developing
economies around the world in an online or offline environment.
Net1's UEPS/EMV solution is also completely interoperable with
global EMV standards that seamlessly permit access to all the UEPS
functionality in a traditional EMV environment. In addition to
payments, UEPS can be used for banking, healthcare management,
payroll, remittances, voting and identification.
Net1 operates market-leading payment processors in South Africa,
Republic of Korea, and Ghana. In addition, Net1's proprietary
Mobile Virtual Card technology offers secure mobile payments and
banking services in developed and emerging countries while its
MediKredit and XeoHealth subsidiaries provide its proprietary 5010
and ICD-10 compliant real-time claims adjudication system.
Net1 has a primary listing on the Nasdaq and a secondary listing
on the JSE Limited.
Forward-Looking Statements
This announcement contains forward-looking statements that
involve known and unknown risks and uncertainties. A discussion of
various factors that cause our actual results, levels of activity,
performance or achievements to differ materially from those
expressed in such forward-looking statements are included in our
filings with the Securities and Exchange Commission. We undertake
no obligation to revise any of these statements to reflect future
events.
Investor Relations Contact:Net 1 UEPS Technologies Inc.Dhruv
ChopraHead of Investor Relations+1-917-767-6722dchopra@net1.com
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