The group says it has the cash, having recently sold its South Korean payment processor KSNET
Financial services and technology group Net1 UEPS says its is optimistic about weathering the Covid-19 pandemic, with recent disposals boosting its cash position to a level above its R3.4bn market capitalisation.
The group said it has cash of $209m at the end of its third quarter to end-March, but is facing costs related to the pandemic, including being unable to charge some banking fees in SA. The group announced earlier in January it had agreed to sell South Korean payment processor KSNET for $237m.said it is prohibited from charging certain banking-related fees in SA, estimating it had forgone cash withdrawal fees of about R8.2m in March.
The group expects this to cost it between R18m and R20m per month until it is allowed to charge customers for withdrawing cash from its ATM network. “We completed a number of corporate disposals over the past few months, which leaves the company in a very strong and liquid position,” said CEO Herman Kotzé. “We also believe that there will be significant demand for our products once the operating restrictions are lifted,” Kotzé said.
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