Net1 exercises option to acquire further 35% of Bank Frick
08 Oktober 2019 - 2:30PM
Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS, JSE: NT1) (“Net1” or
the “Company”) today announced that it has exercised its option to
acquire an additional 35% interest in Bank Frick & Co. AG
(“Bank Frick”), a fully licensed bank based in Balzers,
Liechtenstein for approximately USD 46.4 million, subject to
certain purchase price adjustments. The transaction is subject to
approval from the Liechtenstein Financial Market Authority and is
expected to close in March 2020. Following the successful
completion of the additional investment, the Company will own 70%
of Bank Frick with the Kuno Frick Family Foundation owning the
remaining 30% interest.
Net1 has been a minority investor in Bank Frick
for the past two years, and has found the breadth of the bank’s
established banking services, as well as the reputation the bank
has established to be impressive. Going forward, as a vertically
integrated banking and payments platform combining Bank Frick’s
assets and Net1’s technologies, Net1 expects to further expand its
fintech, payments and blockchain services, in addition to the
bank’s existing products and services. Bank Frick holds an issuing
license from Visa and acquiring licenses from both Visa and
MasterCard.
Bank Frick has also established itself as the
leading crypto and blockchain-friendly bank in Europe, under the
most comprehensive and supportive regulatory framework in the
region. It has also invested in and defined a number of related
products and custodial arrangements, as well as pioneered corporate
finance advice to the world’s leading virtual financial assets
exchanges and virtual currency operators.
“Bank Frick provides the cornerstone of our
European strategy to deliver all-encompassing financial technology
and banking services to SMEs in the region,” said Herman Kotzé, CEO
of Net1. “The bank’s strong CHF 90 million Tier 1 capital,
Visa and MasterCard memberships, pan-European universal banking
license and recognized leadership in banking services, especially
to the virtual financial assets / crypto industry will meaningfully
increase the breadth, scale and speed of complementary offerings of
both Net1 and Bank Frick’s fintech businesses. We are grateful to
have the Frick family as co-shareholders and Dr. Mario Frick, in
particular, as chairman of the board. We look forward to continue
the excellent relationship that we have established over the last
two years with the Frick family and the bank’s executives and
employees. We expect the transaction to be accretive to fiscal 2021
fundamental earnings.”
“Net1 possesses enormous digital know-how and
expertise in payments globally,” said Mario Frick, Chairman of the
Board of Directors of Bank Frick. “Since the founding of Bank Frick
20 years ago, the Frick family has taken great pride in the
competencies established in the bank and the highly capable
workforce, and I know that Net1 shares our enthusiasm and
commitment to our clients, employees and strategy. With the
combination of Bank Frick and Net1, we will be able to strengthen
our current business areas, drive forward our fintech strategy,
develop new digital business models and roll them out across
Europe. Together we bring the reliability of the classic banking
system, with the new opportunities offered by digitization and
blockchain technology.”
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 through DNI 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.
About Bank Frick
(www.bankfrick.li)
Bank Frick is a family-run Liechtenstein bank
with headquarters in Balzers. It was founded in 1998 by Kuno Frick
Sr (1938–2017) and is currently controlled by the Kuno Frick Family
Foundation.
Bank Frick focuses on providing products and
services for financial intermediaries such as fiduciaries, asset
managers, payment service providers and fintechs. Bank Frick
develops tailor-made funds for intermediaries and acts as a
custodian bank. It is the only bank in Liechtenstein with acquiring
licenses from Visa and MasterCard. Bank Frick employs around 110
members of staff and also operates a branch in London, UK.
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 receipt of
regulatory approval to close the transaction, the possibility that
the expected synergies from the investment will not be realized, or
will not be realized within the expected time period; disruption
from the investment making it more difficult to maintain business
and operational relationships; and other factors, many of which are
beyond the Company’s control, 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 Chopra Group Vice President, Investor Relations Phone: +1
917-767-6722 Email: dchopra@net1.com
Media Relations Contact:
Bridget von Holdt Business Director – BCW Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com
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