Wrap Text
Net1 exercises option to acquire further 35% of Bank Frick
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
("Net1" or "the Company")
Net1 exercises option to acquire further 35% of Bank Frick
JOHANNESBURG, October 8, 2019 - Net1 (Nasdaq: UEPS, JSE: NT1) 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
Johannesburg
October 8, 2019
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 08/10/2019 02:30:00
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