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NETW - Network International Holdings News Story

289p -1.2  -0.4%

Last Trade - 21/01/22

Sector
Industrials
Size
Mid Cap
Market Cap £1.62bn
Enterprise Value £1.65bn
Revenue £226.6m
Position in Universe 334th / 1804

Network Intnl Hldgs - Strategic exit of Transguard Cash stake

Wed 10th November, 2021 7:00am
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RNS Number : 8631R  Network International Holdings PLC  10 November 2021

10(th) November 2021: Network International Holdings Plc

Strategic exit of Transguard Cash stake provides funds for future growth
opportunities

Holding in TG Cash to be sold for c.USD 74 million, with the intention to
deploy the cash proceeds into value enhancing activities aligned with our core
digital payments strategy

Network announces the sale of our 50% shareholding in Transguard Cash LLC ("TG
Cash") to Transguard Group LLC, which will generate a total of approximately
USD 74 million in cash. TG Cash provides end to end ATM and cash management
services for banks and retailers in the UAE, which as an entirely cash focused
business, is not aligned with the Group's digital payments strategy. The exit
enables a greater focus of our business activities to our digital payments
purpose; and proceeds from the sale will be deployed in the future to higher
growth and value enhancing opportunities.

In 2020, the Group's share of EBITDA from TG Cash was USD 9.7 million and no
cash dividends were received. The gross assets as stated in the Group's
consolidated statement of financial position were USD 62.4 million. The exit
has no impact on the financial guidance for Group revenue growth and EBITDA
margin given as part of the Capital Markets Day on 29 September 2021, as TG
Cash is not consolidated from a revenue perspective and is not included in the
calculation of Group EBITDA margin.

We remain focused on the multiple opportunities for organic growth in our
fast-accelerating markets. It is therefore our expectation that the loss of
the Group's share of EBITDA from TG Cash will be replaced, through the future
deployment of funds into new value enhancing opportunities, as outlined at our
recently held Capital Markets Day. Our overall financial outlook for 2022 and
onwards is therefore unchanged.

 

Investor Relations enquiries

Network
International                                                                   InvestorRelations@Network.Global

 

Amie Gramlick, Head of Investor Relations
 

 

Media enquiries

Teneo
                              NetworkInternational@Teneo.com

Ben Foster, Andy
Parnis

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