Disposal Of Controlling Interest In KSNET And FIHRST (Tables)

9 Months Ended

Mar. 31, 2021

Net1 Korea [Member]

Impact Of Deconsolidation And Calculation Of Net Gain Recognized On Deconsolidation

Net1 Korea
					March 2020
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(1)						21,128
Fair value of consideration received						237,220
Less: carrying value of Net1 Korea, comprising						200,843
	Cash and cash equivalents					23,473
	Accounts receivable, net					30,467
	Finance loans receivable, net					13,695
	Inventory					2,377
	Property, plant and equipment, net					7,601
	Operating lease right of use asset					181
	Goodwill (Note 7)					107,964
	Intangible assets, net					4,655
	Deferred income taxes assets					1,719
	Other long-term assets					10,984
	Accounts payable					(5,484)
	Other payables					(5,523)
	Operating lease liability - current					(69)
	Income taxes payable					(3,481)
	Deferred income taxes liabilities					(1,497)
	Operating lease liability - long-term					(112)
	Other long-term liabilities					(335)
	Released from accumulated other comprehensive income – foreign currency translation reserve (Note 12)					14,228
	Settlement assets					44,111
	Settlement liabilities					(44,111)
		Gain recognized on disposal, before transaction costs and tax				36,377
		Transaction costs(2)				8,644
			Gain recognized on disposal, before tax			27,733
			Taxes related to gain recognized on disposal(1)			15,000
				Gain recognized on disposal, after tax	$	12,733

(1) Represents taxes that the Company expected to pay related to the disposal of Net1 Korea as of March 31, 2020. The Company also agreed that the purchaser withhold potential 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 commenced a process to claim a refund from the South Korean tax authorities of the amount withheld and received this amount of approximately $20.1 million (KRW 23.8 billion) in September 2020. The Company included the expected amount to be refunded in the caption Accounts receivable, net and other receivables in its consolidated balance sheet as of June 30, 2020, refer also to Note 3.

2.Disposal of controlling interest in KSNET and FIHRST (continued)

2020 Disposals (continued)

March 2020 disposal of KSNET (continued)

(2) 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.

FIHRST [Member]

Impact Of Deconsolidation And Calculation Of Net Gain Recognized On Deconsolidation

FIHRST
					December 31,
					2019
Fair value of consideration received					$	11,749
Less: carrying value of FIHRST, comprising						1,870
	Cash and cash equivalents					854
	Accounts receivable, net					367
	Property, plant and equipment, net					64
	Goodwill (Note 7)					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 12)					1,578
	Settlement assets					17,406
	Settlement liabilities					(17,406)
		Gain recognized on disposal, before tax				9,879
		Taxes related to gain recognized on disposal, comprising:				-
			Capital gains tax			2,418
			Release of valuation allowance related to capital losses previously unutilized(1)			(2,418)
		Transaction costs				136
				Gain recognized on disposal, after tax	$	9,743

(1) 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.