Other partners in the BEE consortium include:
* A grouping of community-focused organisations led by black women, including Abigail's Women's Movement, Jerusalem Burial Club, Ubuhlobo, Luzuko Lwethu, Immanuel Soup Kitchen and Garden, Elukhuselweni Children's Home, Mayibuye Project, Club 40, Simelela Rape Centre, Bancedeni, Empilweni Project and the Amy Bill Foundation.
* Several community development enterprises, including the Ekurhuleni Metropolitan Municipality Regional Early Childhood Development Forum, Kwakhanya Wellness Community Development Project, Sosebenza Cultural Group, Ekuphumleni Frail and Aged Care Centre, Tembaletu School for Handicapped Black Children, Sinethemba HIV AIDS Support Centre, Ubuhlobo Womens Society and Imbiza Yomama Burial Society.
* The Net1 Foundation is a charitable foundation focused on uplifting communities in which Net1 operates. Beneficiaries of grants and infrastructure development projects provided by the Net1 Foundation will include Net1's black employees, as well as children, pensioners, the disabled, unemployed and rural poor.
Dual-listed Net1 UEPS Technologies has agreed to issue shares equal to 19.9% of its stock to empowerment partners, at R70.28 per share, in a deal worth about R629 million.
The company says the broad-based empowerment deal will “strengthen the development of its business plan” and complies with South African law and business practice.
Net1 has agreed to issue a one-year option to a consortium of black South Africans, community groups and the Net1 Foundation. The groups can purchase up to 8.955 million shares, equal to 19.9% of Net1's stock, at $8.96 - or about R70.28.
The company's shares closed 2.4% higher, a 190c gain, yesterday after the announcement, to R81.
Net1 says in a statement the lead partner in the broad-based black-economic empowerment consortium is Mosomo Investment Holdings, an empowerment investment company with experience in mining, financial services and mass banking concepts.
Mosomo CEO Kgomotso Brian Mosehla has been appointed to the Net1 board with immediate effect.
Mosehla says: “Our focus will be on helping expand Net1's product offerings in financial services and healthcare processing, which will become increasingly important across the African continent, with the advent of several large-scale national projects, as well as general transaction processing activities.”
Net1 chairman and CEO Serge Belamant says the deal “fulfils our desire to establish a broad base of BEE shareholders in Net1 and the parties will bring fresh perspective and experience to the table”.
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