Network International Holdings PLC Update on DPO acquisition (8124U)
April 08 2021 - 1:41AM
UK Regulatory
TIDMNETW
RNS Number : 8124U
Network International Holdings PLC
08 April 2021
Network International Holdings Plc, 08 April 2021
Update on DPO acquisition
Network International Holdings plc ("Network"), the leading
enabler of digital commerce across the Middle East and Africa,
provides an update on the proposed acquisition of DPO Group ("DPO")
("the Transaction").
-- DPO has continued to trade strongly into 2021
-- Transaction terms have been strengthened:
o Co-founders of DPO will now receive approximately 50% of their
consideration in Network shares, with a 12/18 month lockup
period
-- Total transaction consideration and overall mix of cash and shares unchanged
DPO is a highly attractive e-commerce payments business with a
leading pan-African presence. DPO traded strongly through 2020 with
over 30% y/y growth in Total Processed Volume (in constant
currency). This strong trading has continued into 2021. We expect
completion of the acquisition during the second quarter of 2021,
subject to the receipt of outstanding regulatory approvals.
We are pleased to announce revised terms, as follows:
-- Total consideration of approximately USD 288 million, and the
overall mix of cash and shares, remains unchanged
o Total consideration from the issuance of new Network shares
remains at USD 63 million, to be issued at a price of 410
pence(1)
o Network shares representing USD 48 million of the total
proceeds of the acquisition, will be subject to a two year escrow,
in respect of certain representations and warranties provided by
the sellers
-- Co-founders' consideration
o Equity component will be increased by USD 20 million to
approximately USD 33 million, from the issuance of new Network
shares, to account for approximately 50% of the co-founders' total
consideration. Their cash consideration has correspondingly been
reduced by USD 20 million
o USD 18 million of the equity component will be subject to a
two-year escrow period. The remainder will be subject to an
increased 12-18 month lockup period (with 50% released from lock-up
after 12 months and 50% released after 18 months)
-- Apis Partners' consideration:
o Equity component will be reduced by USD 20 million to USD 30
million, which will be subject to a two-year escrow period
o Cash consideration increased by USD 20 million
Except as disclosed, there has been no significant change
affecting any matter contained in Network's announcement of the
Transaction on 28 July 2020 and no other significant new matter has
arisen which would have been required to be mentioned in such
announcement if it had arisen at the time of the preparation of
that announcement.
(1) The same price at which Network International completed the
equity raising to fund the DPO acquisition.
Investor Relations enquiries
Network International InvestorRelations@Network.Global
Amie Gramlick, Head of Investor
Relations
Media enquiries
Finsbury Network-Lon@Finsbury.com
James Leviton, Rob Allen
Forward Looking Statements
This announcement contains certain forward-looking statements
with respect to the financial condition, results or operation and
businesses of Network International Holdings Plc. Such statements
and forecasts by their nature involve risks and uncertainty because
they relate to future events and circumstances. There are a number
of other factors that may cause actual results, performance or
achievements, or industry results, to be materially different from
those projected in the forward- looking statements.
These factors include general economic and business conditions;
changes in technology; timing or delay in signing, commencement,
implementation and performance of programmes, or the delivery of
products or services under them; industry; relationships with
customers; competition; and ability to attract personnel. You are
cautioned not to rely on these forward-looking statements, which
speak only as of the date of this announcement. We undertake no
obligation to update or revise any forward-looking statements to
reflect any change in our expectations or any change in events,
conditions or circumstances.
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END
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