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Net1 provides update on Cell C and Blue Label 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 provides update on Cell C and Blue Label transactions
Johannesburg, June 1, 2017 – Net1 (NasdaqGS: UEPS; JSE: NT1) today announced
that it will continue to pursue its acquisition of a 15% interest in the issued share capital
of Cell C (Pty) Ltd (“Cell C”) for a consideration of ZAR 2 billion.
Blue Label Telecoms Limited (“Blue Label”) and the Company’s subsidiary, Net1
Applied Technologies South Africa (Pty) Ltd (“Net1 SA”), have mutually agreed that
Net1 SA will not subscribe for shares in Blue Label and the subscription agreement has
therefore been terminated.
The Company has also been released from its ZAR 2 billion guarantee issued by
FirstRand Bank Limited, acting through its Rand Merchant Bank division (“RMB”), in
favour of Blue Label.
The Company continues to make substantial progress toward finalizing terms to acquire
a non-controlling interest in DNI-4PL Contracts (Pty) Ltd (“DNI”), with an option to
acquire a controlling stake in DNI in the future.
The proposed investments in Cell C and DNI are subject to certain conditions, including
the satisfactory completion of due diligence, the required internal and external
approvals and the execution of definitive transaction agreements. The Company intends
to settle the purchase consideration for these two investments using a combination of
surplus cash and debt. The Company does not intend to issue any shares of common
stock to fund these two investments.
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, ChinaUnionPay, Alipay and
WeChat 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.
Net1 has a primary listing on the NASDAQ and a secondary listing on the Johannesburg
Stock Exchange.
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 proposed investments in Cell C and DNI not closing;
failing to obtain the necessary debt financing; or failure by the Company to realize the
anticipated benefits from these transactions; 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, 2016, 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
Media Relations Contact:
Bridget von Holdt
Business Director – Burson-Marsteller South Africa
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com
Johannesburg
June 1, 2017
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 01/06/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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