JOHANNESBURG, South Africa, Sept. 19, 2019 (GLOBE NEWSWIRE) -- Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS; JSE: NT1) (“Net1” or the “Company”) today announced that Blue Label Telecoms Limited (JSE:BLU) (“Blue Label”), the largest shareholder in Cell C Ltd (“Cell C”), has issued an updated trading statement informing its shareholders that Blue Label is impairing its Cell C investments to nil for the year ended May 31, 2019. Net1 believes that the fair value of Cell C at June 30, 2019 (Net1’s fiscal year end) is nil ($0) and expects to record a non-cash fair value adjustment to reduce its carrying value in Cell C to nil. Net1 financial results for the fourth quarter and year ended June 30, 2019, will be released on September 26, 2019.
As previously disclosed, Cell C is currently engaged in a comprehensive restructuring plan with its stakeholders and Net1 remains fully supportive of this process. There have been several positive developments in this process since June 30, 2019.
“The decisions of Net1 and Blue Label to write down the value of their respective equity holdings do not impact Cell C’s operations, DNI’s distribution capabilities or the proposed transactions being pursued by it,” said Herman Kotzé, CEO of Net1. “We believe that Cell C’s long-term prospects will significantly improve once it has been recapitalized.”
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding cost synergies, liquidity and strategy are forward-looking statements. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. Factors that might cause such differences include, but are not limited to, Cell C’s failure to successfully recapitalize and improve its business, as well as other factors, many of which are beyond the Company’s control, and other important factors included in the Company’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018, as such Risk Factors may be updated from time to time in subsequent reports. The Company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
About Net1 (www.net1.com)
Net1 is a leading provider of transaction processing services, financial inclusion products and services and secure payment technology. Net1 operates market-leading payment processors in South Africa and the Republic of Korea. Net1 offers debit, credit and prepaid processing and issuing services for all major payment networks. In South Africa, Net1 provides innovative low-cost financial inclusion products, including banking, lending and insurance and through DNI is a leading distributor of mobile subscriber starter packs for Cell C, a South African mobile network operator. Net1 leverages its strategic equity investments in Finbond and Bank Frick (both regulated banks), and Cell C to introduce products to new customers and geographies. Net1 has a primary listing on NASDAQ (UEPS) and a secondary listing on the Johannesburg Stock Exchange (JSE:NT1). Visit www.net1.com for additional information about Net1.
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