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Net 1 to write down investment in South Africa-based telco Cell C

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Net 1 to write down investment in South Africa-based telco Cell C

Net 1 UEPS Technologies Inc. expects to record a noncash fair value adjustment to reduce its carrying value in Cell C (Pty) Ltd. to zero dollars.

The decision came as Blue Label Telecoms Ltd., Cell C's largest shareholder, decided to impair its investments in the South Africa-based telecommunications company to nil for the year ended May 31. Cell C is currently undertaking a restructuring plan, and it previously amended the terms of its private airtime facility agreement to delay timing of selected repayments, which resulted in a downgrade from S&P Global Ratings.

Net 1 will release its fourth quarter results on Sept. 26 and expects to record a net loss and a 38% year-over-year decrease in revenues for the fiscal year ended June 30.