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Disposal Of Controlling Interest In KSNET, FIHRST And DNI (Impact Of Deconsolidation And Calculation Of Net Loss Recognized On Deconsolidation) (Details)
$ in Thousands, R in Millions, ₩ in Billions
 1 Months Ended 3 Months Ended 9 Months Ended
Mar. 01, 2020
KRW (₩)
Mar. 01, 2020
USD ($)
Dec. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Mar. 31, 2020
USD ($)
Mar. 31, 2020
ZAR (R)
Mar. 31, 2019
USD ($)
Jan. 23, 2020
USD ($)
Dec. 31, 2019
ZAR (R)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
ZAR (R)
Less: carrying value, comprising           $ 0   $ 0         $ 0 [1],[2]  
Settlement assets           8,037   8,037         24,523 [1],[2]  
Settlement liabilities           (8,037)   (8,037)         (24,523) [1],[2]  
Gain (loss) recognized on disposal, after tax           747 $ 1,163 [2] 6,402   $ 12,358 [2]        
Discontinued [Member]                            
Gain (loss) recognized on disposal, after tax             1,163     12,358        
Net1 Korea [Member]                            
Proceeds from disposal of Net1 Korea, net of cash disposed   $ 192,619                        
Add: Cash and cash equivalents disposed   23,473                        
Add: Cash withheld by purchaser to settle South Korean taxes [3]   21,128                        
Fair value of consideration received   237,220                        
Less: carrying value, comprising   200,843                        
Cash and cash equivalents   23,473                     26,051  
Accounts receivable, net   30,467                     41,359  
Finance loans receivable, net   13,695                     9,650  
Inventory   2,377                     1,826  
Property, plant and equipment, net   7,601                     10,327  
Operating lease right of use asset   181                        
Goodwill (Note 8)   107,964                     112,071  
Intangible assets, net   4,655                     9,661  
Deferred income taxes assets   1,719                     1,917  
Other long-term assets, including reinsurance assets   10,984                     15,414  
Accounts payable   (5,484)                     (7,139)  
Other payables   (5,523)                     (6,827)  
Operating lease right of use lease liability - current   (69)                        
Income taxes payable   (3,481)                     (4,893)  
Deferred income taxes liabilities   (1,497)                     $ (508)  
Right-of-use operating lease liability - long-term   (112)                        
Long-term debt   (335)                        
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)   14,228                        
Settlement assets   44,111                        
Settlement liabilities   (44,111)                        
Taxes related to gain recognized on disposal [3]   15,000                        
Gain recognized on disposal, before transaction costs and tax   36,377                        
Transaction costs [4]   8,644                        
Gain (loss) recognized on disposal, before tax   27,733                        
Gain (loss) recognized on disposal, after tax   12,733                        
Net1 Korea [Member] | Discontinued [Member]                            
Fair value of consideration received                     $ 237,200      
Gain (loss) recognized on disposal, after tax             751     4,528        
Transaction costs incurred directly related to the disposal   7,500                        
Transaction costs related to non-refundable securities transfer tax ₩ 1.4 1,200                        
Estimated tax exposure amount related to disposal   $ 15,000                        
Percentage of expected taxable gain related to disposal 21.00% 21.00%                        
Capital gains taxes withheld from purchase price by purchaser ₩ 23.8 $ 19,900                        
Total tax withholding from purchase price by purchaser   $ 21,100                        
FIHRST [Member]                            
Fair value of consideration received     $ 11,749                      
Less: carrying value, comprising     1,870                      
Cash and cash equivalents     854                      
Accounts receivable, net     367                      
Inventory     0                      
Property, plant and equipment, net     64                      
Goodwill (Note 8)     599                      
Intangible assets, net     30                      
Deferred income taxes assets     42                      
Accounts payable     (7)                      
Other payables     (1,437)                      
Income taxes payable     (220)                      
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)     1,578     0 [2] 0 [2] (1,578) [2]   0 [2]        
Settlement assets     17,406                      
Settlement liabilities     (17,406)                      
Taxes related to gain recognized on disposal     0                      
Capital gains tax     2,418                      
Release of valuation allowance related to capital gains tax previously unutilized [5]     (2,418)                      
Transaction costs     136                      
Gain (loss) recognized on disposal, before tax     9,879                      
Gain (loss) recognized on disposal, after tax     9,743                      
FIHRST [Member] | Discontinued [Member]                            
Fair value of consideration received     $ 11,700                 R 172.2    
DNI [Member]                            
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)           $ 0 (5,841) [2] 0   (5,841) [2]        
DNI [Member] | Discontinued [Member]                            
Fair value of consideration received       $ 27,600 $ 27,600   27,600     27,600        
Gain (loss) recognized on disposal, after tax             412     7,830        
Percentage of ownership interest prior to disposal         55.00%                  
DNI [Member] | Discontinued [Member] | Short-term Debt [Member]                            
Deferred income taxes liabilities       (4,200) $ (4,200)   (4,200)     (4,200)       R (60.5)
DNI [Member] | Equity Method Investment Total [Member]                            
Fair value of consideration received       27,626 27,626   27,626     27,626        
Fair value of retained interest in 30% of DNI [6]       74,195 74,195   74,195     74,195        
Carrying value of non-controlling interest       88,934 88,934   88,934     88,934        
Subtotal       190,755 190,755   190,755     190,755        
Less: carrying value, comprising       199,930 199,930   199,930     199,930        
Cash and cash equivalents       2,114 2,114   2,114     2,114        
Accounts receivable, net       24,577 24,577   24,577     24,577        
Finance loans receivable, net       1,030 1,030   1,030     1,030        
Inventory       893 893   893     893        
Property, plant and equipment, net       1,265 1,265   1,265     1,265        
Equity-accounted investments       242 242   242     242        
Goodwill (Note 8)       113,003 113,003   113,003     113,003        
Intangible assets, net       80,769 80,769   80,769     80,769        
Deferred income taxes assets       28 28   28     28        
Other long-term assets, including reinsurance assets       26,553 26,553   26,553     26,553        
Accounts payable       (5,186) (5,186)   (5,186)     (5,186)        
Other payables [7]       (16,484) (16,484)   (16,484)     (16,484)        
Income taxes payable       (2,482) (2,482)   (2,482)     (2,482)        
Deferred income taxes liabilities       (22,083) (22,083)   (22,083)     (22,083)        
Long-term debt       (10,150) (10,150)   (10,150)     (10,150)        
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)       5,841                    
Loss recognized on disposal before tax related to sale of 17% of DNI       (10,720)                    
Loss recognized on disposal, before tax, related to fair value adjustment of retained interest in 38% of DNI       1,545                    
Taxes related to gain recognized on disposal [8]       0                    
Gain (loss) recognized on disposal, before tax       (9,175)                    
Gain (loss) recognized on disposal, after tax       (9,175)                    
DNI [Member] | Equity Method Investment 17% Sold [Member]                            
Fair value of consideration received       27,626 27,626   27,626     27,626        
Fair value of retained interest in 30% of DNI [6]       0 0   0     0        
Carrying value of non-controlling interest       0 0   0     0        
Subtotal       27,626 27,626   27,626     27,626        
Less: carrying value, comprising       38,346 38,346   38,346     38,346        
Cash and cash equivalents       354 354   354     354        
Accounts receivable, net       4,116 4,116   4,116     4,116        
Finance loans receivable, net       173 173   173     173        
Inventory       149 149   149     149        
Property, plant and equipment, net       212 212   212     212        
Equity-accounted investments       41 41   41     41        
Goodwill (Note 8)       18,924 18,924   18,924     18,924        
Intangible assets, net       13,526 13,526   13,526     13,526        
Deferred income taxes assets       5 5   5     5        
Other long-term assets, including reinsurance assets       4,447 4,447   4,447     4,447        
Accounts payable       (868) (868)   (868)     (868)        
Other payables [7]       (2,760) (2,760)   (2,760)     (2,760)        
Income taxes payable       (416) (416)   (416)     (416)        
Deferred income taxes liabilities       (3,698) (3,698)   (3,698)     (3,698)        
Long-term debt       (1,700) (1,700)   (1,700)     (1,700)        
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)       5,841                    
Loss recognized on disposal before tax related to sale of 17% of DNI       (10,720)                    
Loss recognized on disposal, before tax, related to fair value adjustment of retained interest in 38% of DNI       0                    
Taxes related to gain recognized on disposal [8]       505                    
Gain (loss) recognized on disposal, before tax       (10,720)                    
Gain (loss) recognized on disposal, after tax       (11,225)                    
DNI [Member] | Equity Method Investment 17% Sold [Member] | Discontinued [Member]                            
Capital gain (loss) as a result of disposal of business               500            
DNI [Member] | Equity Method Investment 8% Retained Interest Sold In May 2019 [Member]                            
Fair value of consideration received       0 0   0     0        
Fair value of retained interest in 30% of DNI [6]       14,849 14,849   14,849     14,849        
Carrying value of non-controlling interest       0 0   0     0        
Subtotal       14,849 14,849   14,849     14,849        
Less: carrying value, comprising       14,540 14,540   14,540     14,540        
Cash and cash equivalents       158 158   158     158        
Accounts receivable, net       1,841 1,841   1,841     1,841        
Finance loans receivable, net       77 77   77     77        
Inventory       66 66   66     66        
Property, plant and equipment, net       95 95   95     95        
Equity-accounted investments       19 19   19     19        
Goodwill (Note 8)       8,466 8,466   8,466     8,466        
Intangible assets, net       6,051 6,051   6,051     6,051        
Deferred income taxes assets       2 2   2     2        
Other long-term assets, including reinsurance assets       1,989 1,989   1,989     1,989        
Accounts payable       (389) (389)   (389)     (389)        
Other payables [7]       (1,235) (1,235)   (1,235)     (1,235)        
Income taxes payable       (186) (186)   (186)     (186)        
Deferred income taxes liabilities       (1,654) (1,654)   (1,654)     (1,654)        
Long-term debt       (760) (760)   (760)     (760)        
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)       0                    
Loss recognized on disposal before tax related to sale of 17% of DNI       0                    
Loss recognized on disposal, before tax, related to fair value adjustment of retained interest in 38% of DNI       309                    
Taxes related to gain recognized on disposal [8]       (3,836)                    
Gain (loss) recognized on disposal, before tax       309                    
Gain (loss) recognized on disposal, after tax       4,145                    
DNI [Member] | Equity Method Investment 8% Retained Interest Sold In May 2019 [Member] | Discontinued [Member]                            
Capital gain (loss) as a result of disposal of business               (2,000)            
DNI [Member] | Equity Method Investment 30% Retained Interest [Member]                            
Fair value of consideration received       0 0   0     0        
Fair value of retained interest in 30% of DNI [6]       59,346 59,346   59,346     59,346        
Carrying value of non-controlling interest       0 0   0     0        
Subtotal       59,346 59,346   59,346     59,346        
Less: carrying value, comprising       58,110 58,110   58,110     58,110        
Cash and cash equivalents       633 633   633     633        
Accounts receivable, net       7,358 7,358   7,358     7,358        
Finance loans receivable, net       308 308   308     308        
Inventory       268 268   268     268        
Property, plant and equipment, net       379 379   379     379        
Equity-accounted investments       72 72   72     72        
Goodwill (Note 8)       33,834 33,834   33,834     33,834        
Intangible assets, net       24,183 24,183   24,183     24,183        
Deferred income taxes assets       8 8   8     8        
Other long-term assets, including reinsurance assets       7,950 7,950   7,950     7,950        
Accounts payable       (1,553) (1,553)   (1,553)     (1,553)        
Other payables [7]       (4,936) (4,936)   (4,936)     (4,936)        
Income taxes payable       (743) (743)   (743)     (743)        
Deferred income taxes liabilities       (6,612) (6,612)   (6,612)     (6,612)        
Long-term debt       (3,039) (3,039)   (3,039)     (3,039)        
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)       0                    
Loss recognized on disposal before tax related to sale of 17% of DNI       0                    
Loss recognized on disposal, before tax, related to fair value adjustment of retained interest in 38% of DNI       1,236                    
Taxes related to gain recognized on disposal [8]       3,331                    
Gain (loss) recognized on disposal, before tax       1,236                    
Gain (loss) recognized on disposal, after tax       (2,095)                    
DNI [Member] | Equity Method Investment 30% Retained Interest [Member] | Discontinued [Member]                            
Capital gain (loss) as a result of disposal of business               $ (3,300)            
DNI [Member] | Equity Method Investment Attributed To Noncontrolling Interest [Member]                            
Fair value of consideration received       0 0   0     0        
Fair value of retained interest in 30% of DNI [6]       0 0   0     0        
Carrying value of non-controlling interest       88,934 88,934   88,934     88,934        
Subtotal       88,934 88,934   88,934     88,934        
Less: carrying value, comprising       88,934 88,934   88,934     88,934        
Cash and cash equivalents       969 969   969     969        
Accounts receivable, net       11,262 11,262   11,262     11,262        
Finance loans receivable, net       472 472   472     472        
Inventory       410 410   410     410        
Property, plant and equipment, net       579 579   579     579        
Equity-accounted investments       110 110   110     110        
Goodwill (Note 8)       51,779 51,779   51,779     51,779        
Intangible assets, net       37,009 37,009   37,009     37,009        
Deferred income taxes assets       13 13   13     13        
Other long-term assets, including reinsurance assets       12,167 12,167   12,167     12,167        
Accounts payable       (2,376) (2,376)   (2,376)     (2,376)        
Other payables [7]       (7,553) (7,553)   (7,553)     (7,553)        
Income taxes payable       (1,137) (1,137)   (1,137)     (1,137)        
Deferred income taxes liabilities       (10,119) (10,119)   (10,119)     (10,119)        
Long-term debt       (4,651) $ (4,651)   $ (4,651)     $ (4,651)        
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13)       0                    
Gain (loss) recognized on disposal, before tax       $ 0                    
DNI [Member] | Re-measurement Of Retained 38% Interest | Discontinued [Member]                            
Amount used to calculate fair value of retained interest in 38% of DNI | R                 R 215.0          
Percentage used to calculate fair value of retained interest in 38% of DNI               7.60524% 7.60524%          
Capital gain (loss) as a result of disposal of business               $ (1,500)            
Valuation allowance against capital loss resulted from disposal of DNI               $ 1,500            
Percentage of ownership interest prior to disposal               38.00% 38.00%          
[1]
Derived from audited financial statements.
[2]
Refer to Note 1
[3]
The Company is currently analyzing the tax impact of the sale of Net1 Korea on its reported results and has made a preliminary estimate of its tax exposure as $15.0 million, which amount represents approximately 21% of its expected taxable gain related to the disposal. The Company also agreed that the purchaser withhold capital gains taxes of $19.9 million (approximately KRW 23.8 billion) and non-refundable securities transaction taxes of $1.2 million (approximately KRW 1.4 billion), for a total withholding of $21.1 million, from the purchase price and pay such amounts, on behalf of Net1 BV, to the South Korean tax authorities. Net1 BV has commenced the process to approach the South Korean tax authorities in order to claim a refund, in full, of the capital gains taxes withheld. The Company has included the expected amount to be refunded in the caption Accounts receivable, net and other receivables in its unaudited condensed consolidated balance sheet as of March 31, 2020, refer also to Note 3.
[4]
Transaction costs include expenses incurred by the Company of $7.5 million directly related to the disposal of Net1 Korea and paid in cash and a non-refundable securities transfer tax of approximately $1.2 million which was also withheld from the purchase price and paid to the South Korean tax authorities directly by the purchaser.
[5]
Net1 SA recorded a valuation allowance related to capital losses previously generated but not utilized. A portion of these unutilized capital losses was utilized as a result of the disposal of FIHRST and, therefore, the equivalent portion of the valuation allowance created was released.
[6]
The fair value of the retained interest in 38% of DNI of $74.2 million ($14.9 million plus $59.3 million has been calculated using the implied fair value of DNI pursuant to the RMB Disposal and has been calculated as ZAR 215.0 million divided by 7. 605235% multiplied by 38%, translated to dollars at the March 31, 2019, rate of exchange. The fair value of the retained interest in DNI was included in equity-accounted investments on the Company’s unaudited condensed consolidated balance sheet as of March 31, 2019.
[7]
Other payables include a short-term loan of ZAR 60.5 million ($4.2 million, translated at exchange rates applicable as of March 31, 2019) due to the Company and included in accounts receivable, net on the Company’s unaudited condensed consolidated balance sheet as of March 31, 2019. The loan was repaid in full in July 2019. Interest on the loan was charged at the South African prime rate.
[8]
Amounts presented are net of a valuation allowance provided. Overall, the disposal of DNI resulted in a capital loss for tax purposes of approximately $1.5 million and the Company provided a valuation allowance of $1.5 million against this capital loss because it does not have any capital gains to offset against this amount. On an individual basis, the transaction to dispose of 17% of DNI resulted in a capital gain of $0.5 million and the re-measurement of the retained 38% interest resulted in a capital loss of $2.0 million ($5.3 million (8% transaction) less $3.3 million (30% transaction)). The valuation allowance of $1.5 million was provided against the $5.3 million, for a net amount presented in the table above of $3.8 million ($5.3 million less $1.5 million).