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Net1 makes strategic investment in Nigerian consumer finance provider One Credit
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 makes strategic investment in Nigerian consumer finance provider One
Credit
Johannesburg, June 11, 2015 – Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS;
JSE: NT1) today announced that it has acquired a 25% interest in One Credit Limited
(“One Credit”), a leading Nigerian consumer finance company focused on providing
credit to unbanked, salaried Nigerian consumers. The Company has also agreed to
provide One Credit with a credit facility of up to US$10 million in the form of
convertible equity-linked loan notes.
One Credit was established three years ago to meet the needs of the average Nigerian
salaried worker who has limited, if any, access to formal credit. The company has
experienced tremendous demand for its consumer finance product offering and has
become one of the leading consumer lenders in the highly fragmented Nigerian
market. The Nigerian consumer finance market has experienced 35% compounded
annual growth from 2005-2012 and still remains relatively under-penetrated with over
90% of Nigerians never having applied for a loan. According to a recent McKinsey
report, the Nigerian consumer finance market is expected to grow in line with the
consumer market and is estimated to reach US$1.4 trillion by 2030 from US$400
billion in 2014.
Net1 believes that it can assist One Credit to grow its market share through the
provision of its financial technology products and services, which have been designed
to address the biggest challenge facing Nigerian financial institutions – the ability to
provide seamless and cashless services in an environment that poses significant
logistical and infrastructural obstacles. In addition, Net1’s solutions will enhance One
Credit’s credit risk management and expand the current product offering to these
customers. By acquiring a significant minority stake, the Company will be able to
actively participate in the formulation and execution of the One Credit business plan,
including its delivery platforms.
“We are very excited to enter Africa’s largest economy and most populous country
with One Credit as our partner,” said Dr. Serge Belamant, Chairman and CEO of
Net1. “The Nigerian consumer finance market, which is one of the fastest growing
industries in the world, presents a unique opportunity to showcase the adaptability,
scalability and robustness of our technologies. Our mobile virtual card and variable
PIN products are particularly well suited to One Credit’s requirements and we look
forward to the successful deployment of our solutions by an experienced management
team that has an in-depth understanding of the Nigerian market,” he concluded.
“We are delighted to welcome Net1 as an investor and financial technology provider,”
said Chijioke Dozie, co-founder and CEO of One Credit. “The business opportunities
in the Nigerian consumer finance market are immense as less than 10% of Nigerians
have ever been able to apply for a loan due to the lack of financial inclusion. Net1’s
expertise, technology and investment will enable us to rapidly grow our market share
in this underserved and dynamic market,” he concluded.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that leverage its Universal
Electronic Payment System (“UEPS”) or utilize its proprietary mobile technologies.
The Company operates market-leading payment processors in South Africa and the
Republic of Korea.
UEPS permits the Company 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 interoperable with global EMV standards that seamlessly enable 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’s mobile technologies include its proprietary mobile payments solution - MVC,
which offers secure mobile-based payments, as well as mobile banking and prepaid
value-added services in developed and emerging countries. The Company intends to
deploy its varied mobile solutions through its Zazoo business unit, which is an
aggregation of innovative technology companies and is based in the United Kingdom.
Net1 has a primary listing on the NASDAQ and a secondary listing on the
Johannesburg Stock Exchange.
About One Credit (www.one-cred.com)
Founded in 2012 and incorporated in Nigeria, One Credit, through its subsidiary One
Finance & Investments Limited, is a registered finance company that is licensed by
the Central Bank of Nigeria. One Credit provides payroll based lending to employees
of both the private and public sectors and unsecured credit services to qualifying
employees of private companies. One Credit is headquartered in Lagos, Nigeria. The
Company’s mission is to provide short-term and affordable consumer credit to
individuals who have limited access to finance.
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 possibility that the expected synergies
from the transaction will not be realized, or will not be realized within the expected
time period; disruption from the transaction making it more difficult to maintain
business and operational relationships; and 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, 2014, 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
Head of Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com
Johannesburg
June 11, 2015
Sponsor:
Deutsche Securities (SA) Proprietary Limited
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