JSE- and Nasdaq-listed technology company Net1 UEPS Technologies will sell its Korean payments processing business KSNet to Stonebridge Capital and Payletter for US$237-million (R3.5-billion).
The transaction, which is not subject to a financing condition, is expected to close in March 2020, it said in a statement to shareholders on Monday.
“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,” it said.
“We also believe that 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 to focus more on our core strategy, boost liquidity and to maximise shareholder returns.”
Net1 CEO Herman Kotzé described the sale as 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”. — (c) 2020 NewsCentral Media