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Constitutional Court orders that Net1’s CPS may participate in SASSA tender process and issues further instructions
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")
Constitutional Court orders that Net1’s CPS may participate in SASSA tender process and issues
further instructions for SASSA’s extension request
Johannesburg, February 26, 2018 – Net 1 UEPS Technologies, Inc. ("Net1" or the "Company")
(NasdaqGS: UEPS; JSE NT1) today announced that the Constitutional Court of South Africa has ordered
that Net1’s subsidiary, Cash Paymaster Services (Pty) Ltd, is not precluded from participating in SASSA’s
tender process which commenced in December 2017.
On February 6, 2018, CPS launched an application with the Constitutional Court requesting a declaration
that CPS is not prohibited from participating in the December 2017 tender issued by SASSA, following
statements made by SASSA that it interpreted the original Constitutional Court order to preclude CPS from
tendering in any future social grant distribution tenders. In its February 23, 2018, order, the Constitutional
Court clarified that CPS’s eligibility to take part in future tender processes was not in issue in the
application in which the judgment was handed down by it on March 17, 2017, and that judgment did not
render CPS ineligible to participate in SASSA's tender process.
CPS has obtained the December 2017 SASSA tender bid documentation. The Company cannot predict the
timing of the SASSA tender process, whether it will actually participate or what the outcome will be.
The Constitutional Court has also scheduled a hearing on March 6, 2018 to consider SASSA’s application
for a six month extension of its contract with CPS, which expires on March 31, 2018. The application has
not been opposed by any parties to the matter, although certain respondents have requested that the
Constitutional Court considers further orders, including the repayment of any profits derived by CPS under
the SASSA contract and a moratorium on the roll-out of Net1’s EasyPay Everywhere product.
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.
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 Company’s
participation in the SASSA tender process, the proposal ultimately submitted by CPS (if it chooses to
participate), the outcome of the SASSA tender process;, the outcome of the March 7, 2018 Constitutional
Court hearings regarding the six month extension requested by SASSA, or whether the Company would
be required to return any profits earned under its SASSA contract, or cease the roll-out of its EasyPay
Everywhere product; 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, 2017, 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-Marstellar South Africa
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com
Johannesburg
February 26, 2018
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 26/02/2018 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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