Business
Net1 to record non-cash fair value write-down of Cell C investment as of June 30, 2019
JOHANNESBURG, South Africa, Sept. 19, 2019 (GLOBE NEWSWIRE) -- Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS; JSE: NT1) (“Net1” or the “Company”) today
About this update from Lesaka Technologies, Inc.
[{"type":"text","content":"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.\n 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.” Forward-Looking Statements 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 y...