Prism board backs Net1 offer

By Iain Scott, ITWeb group consulting editor

Johannesburg, 06 Apr 2006

Prism`s board has come out in support for Net1`s bid to buy the group, with directors saying they will vote in favour of the deal.

This comes after PricewaterhouseCoopers Finance, which was appointed the independent financial advisor to Prism, deemed the deal fair and reasonable to Prism shareholders.

"Accordingly, the Prism board recommends that Prism shareholders vote in favour of the scheme," Prism said in a statement to shareholders this morning.

Net1, a subsidiary of US-listed Net1 UEPS Technologies, is offering R1.16 per Prism share, which puts the total value of the deal at R686.94 million. Prism`s market capitalisation, at yesterday`s closing price of 111c, is R657.33 million.

Prism says Net1 has completed its due diligence investigation and application is being made to the High Court to convene a scheme meeting to consider and approve the deal.

The meeting is to be held on 8 May.

Net1 said in February that it would offer R1.02 per Prism share, or R604.03 million. However, it raised the price in response to a counterbid by JSE-listed Altech, which subsequently withdrew from the race.

The Prism share was untraded by late this morning.