Constitutional Court orders that Net1’s CPS may participate in SASSA tender process and issues further instructions for SAS...
February 23 2018 - 11:05AM
Net 1 UEPS Technologies, Inc. (“Net1” or the “Company”)
(Nasdaq:UEPS) (JSE:NT1) today announced that the Constitutional
Court of South Africa has ordered that Net1’s subsidiary, Cash
Paymaster Services (Pty) Ltd, is not precluded from participating
in SASSA’s tender process which commenced in December 2017.
On February 6, 2018, CPS launched an application
with the Constitutional Court requesting a declaration that CPS is
not prohibited from participating in the December 2017 tender
issued by SASSA, following statements made by SASSA that it
interpreted the original Constitutional Court order to
preclude CPS from tendering in any future social grant distribution
tenders. In its February 23, 2018, order, the Constitutional Court
clarified that CPS’s eligibility to take part in future tender
processes was not in issue in the application in which the judgment
was handed down by it on March 17, 2017, and that judgment did not
render CPS ineligible to participate in SASSA's tender process.
CPS has obtained the December 2017 SASSA tender
bid documentation. The Company cannot predict the timing of the
SASSA tender process, whether it will actually participate or what
the outcome will be.
The Constitutional Court has also scheduled a hearing on March
6, 2018 to consider SASSA’s application for a six month extension
of its contract with CPS, which expires on March 31, 2018. The
application has not been opposed by any parties to the matter,
although certain respondents have requested that the Constitutional
Court considers further orders, including the repayment of any
profits derived by CPS under the SASSA contract and a moratorium on
the roll-out of Net1’s EasyPay Everywhere product.
About Net1
(www.net1.com)
Net1 is a leading provider of alternative
payment systems that leverage its Universal Electronic Payment
System (“UEPS”) or utilize its proprietary mobile technologies.
The Company operates market-leading payment processors
in South Africa and the Republic of Korea. Through
Transact24, Net1 offers debit, credit and prepaid processing and
issuing services for Visa, MasterCard and ChinaUnionPay in China
and other territories across Asia-Pacific, Europe and Africa, and
the United States. Through Masterpayment, Net1 provides payment
processing and enables working capital financing in Europe.
UEPS permits the Company to facilitate
biometrically secure, real-time electronic transaction processing
to unbanked and under-banked populations of developing economies
around the world in an online or offline environment. Net1’s
UEPS/EMV solution is interoperable with global EMV standards that
seamlessly enable access to all the UEPS functionality in a
traditional EMV environment. In addition to payments, UEPS can be
used for banking, healthcare management, payroll, remittances,
voting and identification.
Net1’s mobile technologies include its
proprietary mobile payments solution - MVC, which offers secure
mobile-based payments, as well as mobile banking and prepaid
value-added services in developed and emerging countries.
Net1 has a primary listing on the NASDAQ and a
secondary listing on the Johannesburg Stock Exchange.
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 strategy, future operations, future
financial position, future revenues, projected costs, prospects,
plans and objectives of management 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: the Company’s
participation in the SASSA tender process, the proposal ultimately
submitted by CPS (if it chooses to participate), the outcome of the
SASSA tender process, the outcome of the March 7, 2018
Constitutional Court hearings regarding the six month extension
requested by SASSA, or whether the Company would be required to
return any profits earned under its SASSA contract, or cease the
roll-out of its EasyPay Everywhere product; and 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, 2017, 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.
Investor Relations Contact:
Dhruv ChopraHead of Investor RelationsPhone:
+1-917-767-6722Email: dchopra@net1.com
Media Relations Contact
Bridget von HoldtBusiness Director –
Burson-Marstellar South AfricaPhone: +27-82-610-0650Email:
bridget.vonholdt@bm-africa.com
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