Net1 Sells Remaining Stake in Bank Frick
04 Februar 2021 - 10:05PM
Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS; JSE: NT1) (“Net1” or
the “Company”) today announced that it has sold its remaining
interest in Bank Frick & Co. AG (“Bank Frick”) back to The Kuno
Frick Family Foundation for $30 million. The gross proceeds of $30
million will be reduced by $3.6 million to terminate various
agreements and settle liabilities between Bank Frick and Net1’s IPG
operations. The Company received a $15 million payment at closing
and the remaining proceeds are payable in two installments over the
next 18 months.
“The sale of our interest in Bank Frick is a
milestone in the execution of the corporate strategy that we
announced in September 2020,” said Alex Smith, Net1’s CFO and
interim CEO. “The sale of this interest and the previously
announced closure of the International Payments Group will
eliminate the cash burn and operating losses from Net1’s non-core
operations. Furthermore, the sale will release capital and
management bandwidth to increase our focus on the significant
market opportunity in Net1’s areas of core competency in South
Africa.”
The Company will provide further details on its
second quarter fiscal 2021 earnings call tomorrow, February 5,
2021.
About Net1
(www.net1.com)
Net1 is a South African-focused financial
technology company with a presence in Africa, Asia and Europe. Net1
utilizes its proprietary banking and payment technology to
distribute low-cost financial and value-added services to
underserved consumers and small businesses. The Company also
provides transaction processing services, including being a payment
processor and bill payment platform in South Africa. Net1 leverages
its strategic investments in banks, telecom and mobile payment
technology companies to further expand its product offerings or to
enter new markets.
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: the ability of the Company to successfully
capitalize on market opportunities in South Africa; 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, 2020, 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:Dara Dierks Managing
Director – ICR Email: net1IR@icrinc.com
Media Relations Contact:Bridget
von HoldtBusiness Director – BCWPhone: +27-82-610-0650Email:
Bridget.vonholdt@bcw-global.com
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