Net1 to sell subsidiary for R3.4bn
Net1 UEPS Technologies plans to sell 100% of its stake in KSNET, a South Korean payment processor, to Stonebridge Capital and Payletter for approximately $237 million (R3.4 billion), the company announced on Monday.
In a SENS announcement, Net1 says the transaction, which is not subject to a financing condition, is expected to close in March.
According to the JSE-listed company, the sale will allow it to focus on its core fintech strategy serving underbanked customers in emerging and developed economies.
“KSNET is a profitable and cash-generative business, but operates autonomously and in a more developed economy with limited overlap with the group’s other activities,” says Net1 CEO Herman Kotzé.
“We also believe the intrinsic value of KSNET was not appropriately reflected in Net1’s overall valuation. Therefore, our board commenced a strategic review of our various businesses and investments late last year, and ultimately decided to sell KSNET in order to focus more on our core strategy, boost liquidity and to maximise shareholder returns.
“We believe Stonebridge Capital and Payletter are the right strategic partners for KSNET, as they are committed to building further scale in the South Korean payments market.”
Kotzé continues: “This transaction marks a significant milestone in our strategic plan, and allows management to further focus on its core strategy of providing fintech solutions for the underbanked in South Africa, Africa, Europe and other emerging economies as well as our new blockchain-related products.”