Net1 sells its final stake in Bank Frick
The sale is part of Net1’s efforts to reduce losses from its non-core operations.
South African-focused financial technology company Net1 recently sold its last stake in Bank Frick to the Kuno Frick family for $30 million (R445,276,500). The overall proceeds will be reduced by $3.6 million (R53,268,300) to cancel several agreements and resolve liabilities between Bank Frick and Net1’s IPG operations.
Net1 is a leading provider of payment solutions, transaction processing services and financial technology across multiple industries and in a number of emerging and developed economies. Bank Frick is an enterprising bank offering a range of services designed for financial intermediaries.
Net1 has already accepted a $15 million (R221,951,250) payment at closing and the outstanding proceeds are payable in two instalments over the next 18 months. Net1 CFO Alex Smith said that the sale was a significant achievement in the execution of the company’s corporate strategy that was communicated in September 2020.
“The sale of this interest and the previously announced closure of the International Payments Group will significantly reduce the cash burn and operating losses from Net1’s non-core operations. Furthermore, the sale will release capital and management bandwidth to increase our focus on the significant market opportunity in Net1’s areas of core competency in South Africa,” Alex said.
The company also gave details on its second quarter fiscal 2021 earnings.