Actionable news
All posts from Actionable news
Actionable news in UEPS: Net 1 UEPS Technologies, Inc.,

Net1 Announces $107 Million Equity Investment by International Finance Corporation and IFC Asset Management Company Funds

JOHANNESBURG, SOUTH AFRICA--(Marketwired - April 11, 2016) - Net 1 UEPS Technologies, Inc. ("Net1" or the "Company") (UEPS) (JSE:NT1) today announced that it has entered into an agreement with International Finance Corporation and certain funds managed by IFC Asset Management Company (collectively, "IFC") pursuant to which IFC has agreed to subscribe for 9.98 million shares of the Company's common stock at a subscription price of $10.79 per share, for total proceeds of $107.7 million. The subscription price represents a 20,6% premium over the closing price of the Company's shares on Nasdaq on April 8, 2016. IFC will have an 18% interest in the Company following the transaction. Net1 will use the proceeds of the IFC investment primarily for the expansion of its business and technological solution in emerging markets across the globe.

IFC is a member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets. IFC has been investing in disruptive technologies around the world to help expand access to financial services and as of March 2016 had invested approximately $180 million in 26 financial technology companies around the world, servicing over 220 million people. This is on top of billions of dollars already invested in its successful, decades-long program in support of traditional banks and microfinance institutions.

Closing of the investment is expected to occur during the month of April. IFC will have the right to nominate an independent director to the Net1 board.

"IFC's equity investment in Net1 represents a landmark moment for the Company," said Serge Belamant, Chairman and CEO of Net1. "We are honored that IFC has selected Net1 for its largest investment ever in the financial technology sector. IFC's investment recognizes the achievements, disruptive technologies and business model of the Company and its employees. We are completely aligned with IFC through our shared vision of providing financial inclusion to the billions of unbanked and under-banked citizens of the world and we look forward to the opportunities presented by IFC's expansive global network and expertise," he concluded.

Atul Mehta, IFC Director of Telecoms, Media and...