Fintech group Lesaka Technologies' deal to acquire 100% of the issued and outstanding ordinary shares of Recharger for R507 million has got the green light from the Competition Commission, but with conditions.
“The Commission has approved the proposed transaction whereby Lesaka SA intends to acquire Recharger, with conditions,” it said in a statement on Thursday.
Lesaka, formerly called Net1 UPS, is listed on the JSE as well as the Nasdaq.
The Lesaka Group is active in financial technology markets and uses its proprietary banking and payment technologies to deliver financial services solutions and software to consumers and merchants in Southern Africa.
Recharger is a South African prepaid electricity submetering and payments business with a base of over 460000 registered prepaid electricity meters.
Recharger enables landlords to collect payment for utilities usage from tenants in advance, eliminating the need to manage billing and collections. This model further provides tenants with the ability to manage their utility usage and payments directly, providing them with greater control over cost.
The Commission said Recharger was ultimately controlled by a trust.
The Commission said the proposed transaction was unlikely to substantially lessen or prevent competition in any market.
“To address concerns raised by market participants, the Acquiring Group shall provide hardware security modules and services to third party customers at the same fees that it charges its own vertically integrated subsidiaries. To address public interest concerns, qualifying workers will be included as beneficiaries in an employee share ownership programme (ESOP) established by the Acquiring Firm,” it said.
Lesaka’s shares were 1.05% lower at R91.03 in late afternoon trade on Thursday.
BUSINESS REPORT