JSE- and Nasdaq-listed Net1 UEPS Technologies, which recently concluded a R10bn deal with government to manage the payment of social grants, has reached an agreement to sell up to 19,9% of its equity to black shareholders in a deal worth up to US$80m (R625m).

The deal will “strengthen the development of its business plan in compliance with SA regulation and business practice,” it says in a statement to shareholders.

Net1 is giving a consortium of black South Africans, community groups and the Net1 Foundation a one-year option to purchase up to 8,95m shares of the company’s common stock with an exercise price of $8,96/share.

The leader partner in the consortium is Mosomo Investment Holdings, which has investments in mining and financial services. It most recent acquisition was of a significant stake in Coal of Africa.

Mosomo CEO has been appointed to the Net1 board with immediate effect.

Other partners in the empowerment consortium include a grouping of community-focused organisations led by black women, several community development enterprises, and the Net1 Foundation, a charitable foundation.

Net1 CEO Serge Belamant says the partners will bring “fresh perspective and experience to the table”.

Net1 says its empowerment score will “improve significantly” if the consortium exercises the option in full, allowing it to retain customers and improve its ability to win new business, especially in the public sector.

Consortium members, especially Mosomo, will help Net1’s business development initiatives in SA and most other African countries, with specific focus on the company’s products in financial services, health care processing and payment transaction processing. — Staff reporter, TechCentral