Financial services and technology group Net1 says it has concluded a deal to reduce its shareholding in DNI-4PL Contracts (DNI)  to settle a R400m vendor obligation. The deal comes less than a year after it increased its stake in the company to 55% from 49%. At the time Net 1 said increasing its shareholding would result in the inclusion of DNI into the group's portfolio allowing it to accelerate its efforts to provide a range of low-cost products in areas such as financial services and telecommunications. “The Net1 obligation of R400m relates to the settlement of a profit warranty to the original vendors of DNI, some of whom remain significant investors in DNI,” said Herman Kotze, CEO of Net1. Following the transaction Net1 now owns a 38% stake in DNI.  Founded in 2005, DNI, provides pre-paid airtime services and mobile subscriber starter packs.   “The sale of 17% of Net1's stake in DNI settles this obligation in full and removes R400m of debt from the Net1 balance sheet withou...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now