Net1 signs BEE transaction agreements
Net 1 UEPS Technologies Inc. (NASDAQ:UEPS)(JSE:NT1) today announced that it has signed Relationship Agreements with its BEE partners for the issuance of 4,400,000 shares (“BEE Shares”), which will be partially restricted as to resale for a period of five years. In terms of the agreements, Net1 will issue 4,100,000 shares of our common stock at a price of ZAR 60.00 per share (calculated as 75% of the closing price of our common stock on the JSE Limited on December 6, 2013) to Business Venture Investments 1567 Proprietary Limited (RF) and 300,000 shares to Born Free Investments 272 Proprietary Limited. In order to facilitate the transactions, the Company’s wholly owned subsidiary Net1 Applied Technologies South Africa Proprietary Limited, will lend the funds to the BEE partners at a market related interest rate to effect the purchase of the BEE Shares and these shares will act as the collateral for the loan. The loan is repayable over a period of five years and the transactions are subject to certain conditions, including obtaining the relevant regulatory approvals.
“Having signed our Relationship Agreements we continue to make strides towards concluding our BEE transaction, which we believe epitomizes the spirit of the meaningful transformation that the late President Mandela fought and stood for,” said Dr. Serge Belamant, Chairman and CEO of Net1. “Our actions in this regard lay the foundation for a long-term sustainable business in South Africa together with the addition of BEE partners, who we expect to be actively engaged in identifying and driving new growth opportunities for the Company,” he concluded.