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Net1 to sell KSNET for $237 million
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
LEI: 529900J4IZMWV4RDEB07
ISIN: US64107N2062
(“Net1”)
Net1 to sell KSNET for $237 million
Transaction allows Net1 to further focus on its core fintech strategy serving underbanked
customers in emerging and developed economies
JOHANNESBURG, January 27, 2020 – Net1 (Nasdaq: UEPS, JSE: NT1) today announced that
it has agreed to sell 100% of KSNET, Inc. (“KSNET”), a leading Republic of Korea (“South
Korea”) payment processor, to Stonebridge Capital and Payletter for approximately $237
million. The transaction, which is not subject to a financing condition, is expected to close in
March 2020.
“KSNET is a profitable and cash generative business, but operates autonomously and in a more
developed economy with limited overlap with the group’s other activities. We also believe that
the intrinsic value of KSNET was not appropriately reflected in Net1’s overall valuation.
Therefore our Board commenced a strategic review of our various businesses and investments
late last year, and ultimately decided to sell KSNET in order to focus more on our core strategy,
boost liquidity and to maximize shareholder returns. We believe Stonebridge Capital and
Payletter are the right strategic partners for KSNET, as they are committed to building further
scale in the South Korean payments market,” said Herman Kotzé, CEO of Net1. “This
transaction marks a significant milestone in our strategic plan, and allows management to further
focus on its core strategy of providing fintech solutions for the underbanked in South Africa,
Africa, Europe and other emerging economies as well as our new blockchain related products,”
he concluded.
The Company will provide further details on its second quarter fiscal 2020 earnings call on
February 7, 2020.
FT Partners acted as exclusive financial advisor to Net1 and Yulchon LLC served as legal
counsel.
About Net1 (www.net1.com)
Net1 is a leading provider of transaction processing services, financial inclusion products and
services and secure payment technology. Net1 operates market-leading payment processors
in South Africa and the Republic of Korea. Net1 offers debit, credit and prepaid processing and
issuing services for all major payment networks. In South Africa, Net1 provides innovative low-
cost financial inclusion products, including banking, lending and insurance and through DNI is a
leading distributor of mobile subscriber starter packs for Cell C, a South African mobile network
operator. Net1 leverages its strategic equity investments in Finbond and Bank Frick (both
regulated banks), and Cell C to introduce products to new customers and geographies. Net1 has a
primary listing on NASDAQ (NasdaqGS: UEPS) and a secondary listing on the Johannesburg
Stock Exchange (JSE: NT1). Visit www.net1.com for additional information about Net1.
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 failing to close the
sale transaction, as well as 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, 2019, 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
Group Vice President, Investor Relations
Phone: +1 917-767-6722
Email: dchopra@net1.com
Media Relations Contact:
Bridget von Holdt
Business Director – BCW
Phone: +27-82-610-0650
Email: Bridget.vonholdt@bcw-global.com
Johannesburg
January 27, 2020
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 27-01-2020 01:00:00
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