LONDON, UK: BCP VI Neptune Bidco Holdings Limited reached agreement on the terms of a recommended cash acquisition of Network International Holdings Plc at the rate of 400 pence in cash for each Network International share. BCP VI Neptune Bidco is an entity indirectly owned by Brookfield Business Partners together with private equity funds managed and/or advised by affiliates of Brookfield Asset Management Ltd.

The Brookfield offer values the entire issued and to be issued share capital of Network International Holdings at approximately £2.2 billion.

The Brookfield offer implies an enterprise value multiple of approximately 15.7 times Network’s EBITDA for the financial year ended 31 December 2022.

Network is a leading enabler of digital commerce business across the Middle East and Africa (MEA), operating in more than 50 countries. Network provides a full suite of technology-enabled payments solutions to merchants and financial institutions of all types and sizes, including acquiring and processing services and a comprehensive range of value-added services.

Brookfield considers Network International Holdings to be a strong strategic fit with its investment focus and is uniquely positioned to create significant value for Network and its stakeholders.

Brookfield believes there is strategic and industrial logic in pursuing a potential combination of Network and Magnati Sole Proprietorship LLC.

This combination would potentially create a key platform in the attractive MEA payments space at scale, best positioned to provide a full suite of offerings, further strengthen unit economics and deliver significant synergy opportunities, while creating avenues of sustainable growth.

Brookfield’s global platform, with operations in over 30 countries, and a deep bench of operational partners, will support the combined group’s management team to execute its growth plan, identify future organic and inorganic opportunities, and drive continued operational improvement.

Commenting on the Brookfield Offer, Sir Ron Kalifa, Chairman of Network, said: “The strength of Network’s people and technology platform has enabled it to build on its position as a leading payment solution provider across the Middle East and Africa. The Enlarged Group will be well positioned to serve its customers and partners, and support the acceleration of digital payments in the markets it serves.

The Board has carefully considered the Brookfield offer in the context of the long term growth prospects and opportunities available to the business, balanced against the current challenges and uncertainty in the global macroeconomic environment and the expected timeframe that would be required to generate a similar level of value creation for Network shareholders. The Brookfield Offer represents an opportunity for Network shareholders to crystallise, in cash, the value of their investments at a significant premium.”

Commenting on the Brookfield Offer, Anuj Ranjan, President of Brookfield’s Private Equity Group, said: “Network is a leading payments business across the Middle East and other high-growth geographies that has built a strong industry position. We have followed the company for some time and share the team’s vision to build on that strong position by growing its offering to clients.

With a long history of partnerships across the Middle East, Brookfield is a strategic partner with the track record of owning and operating mission-critical businesses, deep global technology expertise, and a history of building value through operational improvements to help Network realise its full potential.”

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