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Disposal Of Controlling Interest In FIHRST And KSNET | 6 Months Ended
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Dec. 31, 2019
Disposal Of Controlling Interest In FIHRST And KSNET [Abstract] |
Disposal Of Controlling Interest In FIHRST And KSNET | 2. Disposal of controlling interest in FIHRST and KSNET December 2019 disposal of FIHRST In November 2019, the Company through its wholly owned subsidiary, Net1 Applied Technologies South Africa Proprietary Limited (“Net1 SA”), entered into an agreement with Transaction Capital Payment Solutions Proprietary Limited, or its nominee, a limited liab ility private company duly incorporated in the Republic of South Africa, pursuant to which Net1 SA agreed to sell its entire shareholding in Net1 FIHRST Holdings Proprietary Limited (“FIHRST”) for $11,7 million (ZAR 172,2 million). The transaction closed in December 2019. FIHRST was deconsolidated following the closing of the transaction. Net1 SA was obliged to utilize the full purchase price received from the sale of FIHRST to partially settle its obligations under its lending arra ngements and applied the proceeds received against its outstanding borrowings – refer to Note 10. The table below presents the impact of the deconsolidation of FIHRST and the calculation of the net gain recognized on deconsolidation:
|  |  |  |  |  |  | Total
| 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 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
|  | 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 gains tax 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 w as utilized as a result of the disposal of FIHRST and, therefore, the equivalent portion of the valuation allowance created was released. Pro forma results of operations related to the FIHRST disposal have not been presented because the effect of the dispos al was not material to the Company. Disposal of KSNET On January 23, 2020, the Company, through its wholly owned subsidiary Net1 Applied Technologies Netherlands B.V. (“Net1 BV”), a limited liability private company duly incorporated in The Netherlands, entered into an agreement with PayletterHoldings LLC, a limited liability private company duly incorporated in the Republic of Korea, in terms of which Net1 BV agreed to sell its entire shareholding in Net1 Applied Technologies Korea Limited, a limited liability private company incorporated in the Republic of Korea and the sole shareholder of KSNET, Inc. for $237.2 million.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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