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Net1/ IFC to close transaction on May 11, 2016
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/ IFC to close transaction on May 11, 2016
Johannesburg, April 25, 2016 – Net1 (NasdaqGS: UEPS; JSE: NT1) today announced
that all the closing conditions for the share subscription transaction with the
International Finance Corporation (“IFC”) and three funds managed by IFC Asset
Management Company (“AMC”, and together with IFC, the “IFC Parties”),
as announced on April 11, 2016, have been met and approval of same has been
received from the IFC Parties. Pursuant to the terms of the subscription agreement,
the transaction is expected to close on May 11, 2016.
The IFC Parties have agreed to subscribe for 9.98 million shares of the Company’s
common stock at a subscription price of $10.79 per share, for total proceeds of $107.7
million. The subscription price represented a 20.6% premium over the closing price of
the Company’s shares on Nasdaq on April 8, 2016 (the trading day before the
agreement was concluded). The IFC Parties will have an 18% interest in the Company
following the transaction. Net1 will use the proceeds of the investment primarily for
the expansion of its business and technological solutions in emerging markets across
the globe.
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. Through Transact24, Net1 offers debit, credit and prepaid
processing and issuing services for Visa, MasterCard and ChinaUnionPay in China
and other territories across Asia-Pacific, Europe and Africa, and the United States.
Through Masterpayment, Net1 provides payment processing and enables working
capital financing in Europe.
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 International Finance Corporation (www.ifc.org)
International Finance Corporation (“IFC”), a member of the World Bank Group, is
the largest global development institution focused on the private sector in emerging
markets. Working with more than 2,000 businesses worldwide, we use our capital,
expertise, and influence, to create opportunity where it’s needed most. In FY15, our
long-term investments in developing countries rose to nearly $18 billion, helping the
private sector play an essential role in the global effort to end extreme poverty and
boost shared prosperity.
About IFC Asset Management Company (www.ifcamc.org)
IFC Asset Management Company LLC (“AMC”), a wholly-owned subsidiary of IFC,
invests third party capital, enabling investors to benefit from IFC’s expertise in
achieving strong equity returns, as well as positive development impact in the
countries in which it invests. AMC has raised $8.7 billion of capital across 11
investment funds. Three AMC managed funds, including the IFC African, Latin
American and Caribbean Fund, the IFC Financial Institutions Growth Fund and the
Africa Capitalization Fund, are participating in the Net 1 investment. For more
information visit www.ifcamc.org.
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 benefits
from the IFC investment will not be realized; disruption from the investment making
it more difficult to maintain business and operational activities; 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, 2015, 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
April 25, 2016
Sponsor:
Deutsche Securities (SA) Proprietary Limited
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