Net 1 UEPS acquires strategic stake in Blue Label Telecoms
Net 1 UEPS announced that it has entered into a share subscription agreement with Blue Label Telecoms to subscribe for approximately 117.9M shares in Blue Label, at a subscription price of ZAR16.96 per share, representing a 10% discount to ZAR18.84, being the 30-day volume weighted average price of a Blue Label share traded on the Johannesburg Stock Exchange to September 29, 2016. The aggregate subscription consideration payable by Net1 is $144.0M. Following implementation of the subscription, Net1 will own approximately 15% of the issued ordinary shares in Blue Label. Net1 expects to settle the subscription consideration through a combination of cash resources, debt instruments and an equity issuance of five million shares of common stock, at an issue price of $9.00 per share. Following implementation of the subscription, which is subject to the finalization of the financing package and the approval of Blue Label shareholders, Net1 will be entitled to nominate a director to Blue Label's board.