Net1 has, through its wholly-owned subsidiary, Net1 Applied Technologies South Africa, entered into a transaction with FirstRand Bank, acting through its Rand Merchant Bank division (RMB), in terms of which Net1 SA further reduced its shareholding in DNI-4PL Contracts from 38% to 30,4% for R215-million ($14,9-million).
Net1 SA used the proceeds from the sale plus R15-million ($1-million) of its cash reserves to early-settle its outstanding long-term borrowings of R230-million in full on May 3, 2019.
“This transaction further allows us to deleverage our balance sheet, free up our cash reserves and further shows our commitment of divesting non-strategic assets and to focus on our core fintech businesses and markets,” says Herman Kotze, CEO of Net1’s. “We will continue to be aligned with the DNI management team on their operational and strategic plans, and intend to pursue mutual revenue synergies.”
Net1 has also entered into an agreement pursuant to which it has granted a call option to DNI to acquire its remaining 30,4% interest. The option expires on December 31, 2019 and may be exercised at any time during this period.