Net1 sells 8% of DNI to RMB for ZAR 215 million; Company settles long term debt in full
07 Mai 2019 - 10:05PM
Net 1 UEPS Technologies, Inc. (“Net1” or the “Company”) today
announced that it has, through its wholly owned subsidiary, Net1
Applied Technologies South Africa Proprietary Limited (“Net1 SA”),
entered into a transaction with FirstRand Bank Limited, acting
through its Rand Merchant Bank division (“RMB”), in terms of which
Net1 SA further reduced its shareholding in DNI-4PL Contracts
Proprietary Limited (“DNI”) from 38% to 30.4% for a transaction
consideration of ZAR 215 million ($14.9 million). Net1 SA used the
proceeds from the sale plus ZAR 15 million ($1.0 million) of its
cash reserves to early-settle its outstanding long-term borrowings
of ZAR 230 million in full on May 3, 2019.
“This transaction further allows us to
deleverage our balance sheet, free up our cash reserves and further
shows our commitment of divesting non-strategic assets and to focus
on our core fintech businesses and markets,” said Herman G. Kotzé,
Net1’s Chief Executive Officer. “We will continue to be aligned
with the DNI management team on their operational and strategic
plans, and intend to pursue mutual revenue synergies.”
The transaction closed on May 3, 2019. Net1 has
also entered into an agreement pursuant to which it has granted a
call option to DNI to acquire its remaining 30.4% interest. The
option expires on December 31, 2019 and may be exercised at any
time during this period. Excluding any special distributions by
DNI, the option strike price values Net1 SA’s remaining 30.4%
interest at ZAR 859 million ($59.3 million).
All amounts translated to U.S. dollars at the
May 3, 2019, USD/ZAR exchange rate of $1.00 / ZAR 14.46.
About Net1 (www.net1.com)
Net1 is a leading provider of transaction
processing services, financial inclusion products and services and
secure payment technology. Net1 operates market-leading payment
processors in South Africa and the Republic of Korea.
Net1 offers debit, credit and prepaid processing and issuing
services for all major payment networks. In South Africa, Net1
provides innovative low-cost financial inclusion products,
including banking, lending and insurance, and is a leading
distributor of mobile subscriber starter packs for Cell C, a South
African mobile network operator. Net1 leverages its strategic
equity investments in Finbond and Bank Frick (both regulated
banks), and Cell C to introduce products to new customers and
geographies. Net1 has a primary listing on NASDAQ (NasdaqGS: UEPS)
and a secondary listing on the Johannesburg Stock Exchange (JSE:
NT1). Visit www.net1.com for additional information about Net1.
Forward-Looking Statements
This press release contains forward-looking
statements that involve substantial risks and uncertainties. All
statements, other than statements of historical fact, included in
this press release regarding strategy, future operations, future
financial position, future revenues, projected costs, prospects,
plans and objectives of management are forward-looking statements.
The Company may not actually achieve the plans, intentions or
expectations disclosed in its forward-looking statements. Actual
results or events could differ materially from the plans,
intentions and expectations disclosed in the forward-looking
statements that the Company makes. Factors that might cause such
differences include, but are not limited to: the Company failing to
achieve or implement the expected operational and strategic plans
with DNI management, or benefiting from the intended mutual revenue
synergies with DNI, as well as other factors, many of which are
beyond the Company’s control; and other important factors included
in the Company’s reports filed with the Securities and Exchange
Commission, particularly in the “Risk Factors” section of the
Company’s Annual Report on Form 10-K for the fiscal year ended June
30, 2018, as such Risk Factors may be updated from time to time in
subsequent reports. The Company does not assume any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Relations
Contact:Dhruv ChopraGroup Vice President, Investor
RelationsPhone: +1-917-767-6722Email: dchopra@net1.com
Media Relations Contact:Bridget
von HoldtBusiness Director – BCWPhone: +27-82-610-0650Email:
bridget.vonholdt@bm-africa.com
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