Net1 BEE Option Expires Unexercised; Company and BBBEE Consortium Evaluating
JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 04/18/13 -- Net 1 UEPS
Technologies Inc. (NASDAQ:UEPS)(JSE:NT1) ("Net1" or the "Company")
today announced that the one-year option to purchase 8,955,000 shares
with an exercise price of $8.96 per share granted to Business Venture
Investments 1567 ("BVI"), a special purpose vehicle that represents a
consortium of black South Africans, community groups and the Net1
Foundation (the "BBBEE consortium"), has expired unexercised. The
Company and the BBBEE consortium are evaluating various alternatives
to ensure the Company's empowerment objectives will be met.
Mr. Mosehla, who represents the BBBEE consortium, has expressed his
continued commitment to the Company and will remain a director on the
"The protracted legal battle with Absa subsidiary AllPay regarding
the SASSA tender, recently decided in favor of SASSA and Net1 by a
unanimous ruling of the full bench of the South African Supreme Court
of Appeal, and the existence of the DOJ/SEC investigations have
thwarted any chance that BVI may have had to raise the funds required
to exercise the option. I am disappointed that our attempt to embrace
South African economic empowerment policies has failed due to
circumstances beyond our control," said Dr. Serge Belamant, Chairman
and CEO of Net1. "Net1 remains committed to these critical
transformative policies and we hope to conclude a new transaction in
the near future which will achieve a similar result. We would like to
thank Mr. Mosehla for his contributions and continued commitment to
the Company despite this unfortunate setback," he concluded.
About Net1 (www.net1.com)
We are a leading provider of alternative payment systems that
leverage our Universal Electronic Payment System, or UEPS, to
facilitate biometrically secure real-time electronic transaction
processing to unbanked and under-banked populations of developing
economies around the world in an online or offline environment. In
addition to payments, UEPS can be used for banking, healthcare
management, payroll, remittances, voting and identification.
We operate market-leading payment processors in South Africa,
Republic of Korea and Ghana. In addition, our pr
Virtual Card technology offers secure mobile payments and banking
services in developed and emerging countries.
We have a primary listing on the Nasdaq and a secondary listing on
the JSE Limited.
This announcement contains forward-looking statements that involve
known and unknown risks and uncertainties. A discussion of various
factors that cause our actual results, levels of activity,
performance or achievements to differ materially from those expressed
in such forward-looking statements are included in our filings with
the Securities and Exchange Commission. We undertake no obligation to
revise any of these statements to reflect future events.
Net 1 UEPS Technologies Inc.
Vice President of Investor Relations
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