Network International sells TG Cash for $74 million

Network sells TG Cash for $74 million

LONDON, UK: Network International Payments (Network) announced the sale of its 50% shareholding in Transguard Cash LLC (TG Cash) to Transguard Group LLC, which will generate a total of approximately $74 million in cash.

“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,” a news release said.

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 $9.7 million and no cash dividends were received. The gross assets as stated in the Group’s consolidated statement of financial position were $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,”

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