Jan 26 (Reuters) – South African payment processor Net
1 UEPS Technologies Inc said it has agreed to issue
about a fifth of its shares to a consortium of black South
Africans and community groups to comply with regulations in that
country.
South Africa requires companies to meet quotas on black
ownership and employment to rectify the wrongs of apartheid.
Net 1 UEPS offered the consortium, which also includes the
Net 1 Foundation, a one-year option to buy up to 8.96 million of
its outstanding shares at $8.96 each.
The lead partner in the consortium is Mosomo Investment
Holdings Ltd, whose Chief Executive Kgomotso Brian Mosehla has
been appointed to the Net1 board, the Johannesburg-based company
said in a statement.
Through its universal electronic payment system (UEPS), Net1
enables payments in developing countries with little or no
access to traditional banking facilities.
Last week, the company’s unit Cash Paymaster Services had
received a grant from the South African Social Security Agency
(SASSA) for processing the distribution of social grants in the
country.
The company’s shares closed at $10.31 on Wednesday on the
Nasdaq.
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