A South-African tech firm has agreed to buy a majority stake in a Liechtenstein-based blockchain bank.
Net 1 had acquired a minority stake in Bank Frick at the end of 2016. Now, the South-African payment systems specialist agreed to take a 70% controlling stake and responsibility for the company as a whole.
The South-African company will buy shares worth some $46 million currently held by theKuno Frickfamily foundation. The Frick family retains 30% of the ownership through the Kuno Frick Family Foundation.
As a result, Net1 hopes to expand its fintech, payment and blockchain services.
"Bank Frick provides the cornerstone of our European strategy to deliver all-encompassing financial technology and banking services to SMEs in the region," said Herman Kotzé, CEO of Net1.
"The bank's strong CHF 90 million Tier 1 capital, Visa and MasterCard memberships, pan-European universal banking license and recognized leadership in banking services, especially to the virtual financial assets / crypto industry will meaningfully increase the breadth, scale and speed of complementary offerings of both Net1 and Bank Frick's fintech businesses," he added.
The transaction, which is subject to the approval of the Liechtenstein Financial Market Authority, is expected to close in March 2020.