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Net1 board statement on termination of Blue Label subscription agreement
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 board statement on termination of Blue Label subscription agreement
Johannesburg, June 2, 2017 – Net1 (“Net1” or the “Company”) (NasdaqGS: UEPS; JSE: NT1)
The Company announced yesterday that it intended to pursue investments in Cell C (Pty) Ltd
(“Cell C”) and DNI-4PL Contracts (Pty) Ltd (“DNI”) but that it would no longer be investing
directly in Blue Label Telecoms Limited (“Blue Label”).
The Board of Net1 wishes to clarify that its recently appointed chief executive officer did not
unilaterally terminate the subscription agreement with Blue Label. The decision not to invest
was made by the full Net1 board before the end of May 2017.
The proposed three investments by Net1 required the utilization of cash reserves, bank finance
and the issuance of shares of its common stock to fund the transactions.
The material reduction in the Net1 share price in the first five months of 2017 and the lack of
volume demand for its shares at this time would have made it detrimental to Net1 shareholder
value for it to proceed with a share placement. The Board accordingly concluded that Net1 could
only use cash resources and bank debt and could therefore only conclude two of the three
investments.
Net1 approached Blue Label on these matters and both parties mutually agreed that Net1 would
not subscribe for shares in Blue Label and would proceed only with the investments in Cell C
and DNI. Blue Label would replace the Net1 subscription with a private placement with other
parties to part fund its investment in Cell C.
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 2, 2017
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 02/06/2017 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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