Ac­qui­si­tion of stake in Cell C still on

The Star Early Edition - - COMPANIES -

NET1 UEPS Tech­nolo­gies re­it­er­ated yes­ter­day that it will con­tinue to pur­sue its ac­qui­si­tion of a 15 per­cent stake of Cell C for a cash con­sid­er­a­tion of R2 bil­lion, but now through sur­plus cash and debt. Net1 was a party to the um­brella re­struc­ture agree­ment with Cell C in which it was go­ing to buy a 15 per­cent stake in Blue La­bel Tele­coms worth R2bn, while in turn, Blue La­bel was to buy a 45 per­cent stake in Cell C for R5.5bn. The sale of stakes in Cell C is part of ef­forts to slash the mo­bile op­er­a­tor’s debts from R20bn to R6bn. But Blue La­bel and Net1’s sub­sidiary, Net1 Ap­plied Tech­nolo­gies South Africa, have since mu­tu­ally agreed that Net1 SA would not buy shares in Blue La­bel and that agree­ment has there­fore been ter­mi­nated. Net1 said it has also been re­leased from its R2bn guar­an­tee that was is­sued by FirstRand Bank, act­ing through its Rand Mer­chant Bank di­vi­sion, in favour of Blue La­bel. An­other strate­gic ac­qui­si­tion in Net1’s eye­sight is that of a 49.6 per­cent stake of DNI-4PL Con­tracts, a dis­trib­u­tor of Cell C’s mo­bile user starter-packs and pre­paid air­time through a net­work of field op­er­a­tives and agents. Net1 said it had con­cluded a me­moran­dum of un­der­stand­ing to buy DNI-4PL Con­tracts stake. This would be in ad­di­tion to the 15 per­cent stake at Cell C. “The com­pany con­tin­ues to make sub­stan­tial progress to­ward fi­nal­is­ing terms to ac­quire a non­con­trol­ling in­ter­est in DNI-4PL Con­tracts, with an op­tion to ac­quire a con­trol­ling stake in DNI in the fu­ture,” Net1 said. Net1 is cur­rently at the cen­tre of the con­tro­versy around the dis­tri­bu­tion wel­fare grants pay­ments. Au­dit­ing firm KPMG re­vealed that Net1 made R1bn in profit from its un­law­ful con­tract with the South Africa So­cial Se­cu­rity Agency over a pe­riod of five years. – ANA

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.