Net 1 UEPS Technologies 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.
