South Africa's Net 1 UEPS reaches black empowerment deal

(Reuters) - South African payment processor Net 1 UEPS Technologies Inc said it has agreed to issue about a fifth of its shares to a consortium of black South Africans and community groups to comply with regulations in that country.

South Africa requires companies to meet quotas on black ownership and employment to rectify the wrongs of apartheid.

Net 1 UEPS offered the consortium, which also includes the Net 1 Foundation, a one-year option to buy up to 8.96 million of its outstanding shares at $8.96 each.

The lead partner in the consortium is Mosomo Investment Holdings Ltd, whose Chief Executive Kgomotso Brian Mosehla has been appointed to the Net1 board, the Johannesburg-based company said in a statement.

Through its universal electronic payment system (UEPS), Net1 enables payments in developing countries with little or no access to traditional banking facilities.

Last week, the company's unit Cash Paymaster Services had received a grant from the South African Social Security Agency (SASSA) for processing the distribution of social grants in the country.

The company's shares closed at $10.31 on Wednesday on the Nasdaq.