To view the PDF file, sign up for a MySharenet subscription.

NET 1 UEPS TECHNOLOGIES INC - Net1 signs agreements for Black Economic Empowerment (BEE) transactions

Release Date: 11/12/2013 08:10
Code(s): NT1     PDF:  
Wrap Text
Net1 signs agreements for Black Economic Empowerment (“BEE”) transactions

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 signs agreements for Black Economic Empowerment (“BEE”) transactions

Johannesburg – December 11, 2013 - Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS;
JSE: NT1) today announced that it has signed Relationship Agreements with its BEE partners
for the issuance of 4,400,000 shares (“BEE Shares”), which will be partially restricted as to
resale for a period of five years. In terms of the agreements, Net1 will issue 4,100,000 shares
of our common stock at a price of ZAR 60.00 per share (calculated as 75% of the closing
price of our common stock on the JSE Limited on December 6, 2013) to Business Venture
Investments 1567 Proprietary Limited (RF) and 300,000 shares to Born Free Investments 272
Proprietary Limited. In order to facilitate the transactions, the Company’s wholly owned
subsidiary Net1 Applied Technologies South Africa Proprietary Limited, will lend the funds
to the BEE partners at a market related interest rate to effect the purchase of the BEE Shares
and these shares will act as the collateral for the loan. The loan is repayable over a period of
five years and the transactions are subject to certain conditions, including obtaining the
relevant regulatory approvals.

“Having signed our Relationship Agreements we continue to make strides towards
concluding our BEE transaction, which we believe epitomizes the spirit of the meaningful
transformation that the late President Mandela fought and stood for,” said Dr. Serge
Belamant, Chairman and CEO of Net1. “Our actions in this regard lay the foundation for a
long-term sustainable business in South Africa together with the addition of BEE partners,
who we expect to be actively engaged in identifying and driving new growth opportunities
for the Company,” he concluded.

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:
Dhruv Chopra
Managing Director
Phone: +1-917-767-6722
Email: dchopra@net1.com

Johannesburg
December 11, 2013

Sponsor:
Deutsche Securities (SA) Proprietary Limited

Date: 11/12/2013 08:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story