Johannesburg - JSE-listed Net 1 UEPS Technologies (Net1) said yesterday that the International Finance Corporation (IFC) had bought an 18 percent interest in the company for $107 million (R1.58 billion).
“IFC’s equity investment in Net1 represents a landmark moment for the company,” said Serge Belamant, the chairman and chief executive of Net1. “We are honoured that IFC has selected Net1 for its largest investment ever in the financial technology sector.”
Net1’s shares climbed 18.73 percent yesterday on the JSE to close at R160.88.
The IFC, the largest global development institution focused on the private sector in emerging markets, agreed to subscribe for 9.98 million shares of the Net1’s common stock at a subscription price of $10.79 (R159.86) per share.
The IFC paid a 20.6 percent premium over the closing price to Friday’s closing price on Nasdaq, where Net1 has its primary listing, for the shareholding. Net1’s Universal Electronic Payment System facilitates biometrically secure, real-time electronic-transaction processing in an online or offline environment to under-banked populations in developing economies.
Net1 will use the proceeds of the IFC investment primarily for the expansion of its business and technological solution in emerging markets across the globe.
Gavin Wilson, the chief executive of IFC Asset Management Company, said: “Our investment in Net1 recognises the company’s demonstrated ability to provide efficient payments services to the unbanked and underbanked in South Africa while innovating in commercially viable ways. Our goal is to help Net1 use its technology to broaden its product offering and expand its customer base.”
A member of the World Bank Group, the IFC has been investing in disruptive technologies around the world to help expand access to financial services. It has invested $180 million in 26 financial technology companies.
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