Business Update

RNS Number : 2481J

Network International Holdings PLC

21 December 2020

 

Network International Holdings Plc

21^st December 2020

Business Update

Network International Holdings plc ("Network") notes the recent press commentary regarding DPO's ownership of AconaOnline GmbH ("Acona") and its connections with Dietmar Knoechelmann, a former Wirecard executive.

Acona is a DPO group company, currently in liquidation, which was used historically to process negligible volumes in relation to European cardholders purchasing travel services from DPO's merchant customers. Acona was purchased from Dietmar Knoechelmann, among others, in 2013 and has been dormant for several years. A process to liquidate Acona was commenced at the end of 2018, prior to our engagement with DPO.

DPO has been a customer of certain European payment companies ("acquirers") that are, or may have been, connected with Dietmar Knoechelmann or certain of his associates (together with Acona, the "Relevant Entities").  These acquirers were used to process volumes for European cardholders purchasing travel services from DPO's merchant customers in order to reduce processing costs. The acquirers used by DPO were all either principal members of the major global payment networks and licensed payment institutions under the supervision of European Central Banks, or licensed Payment Services Providers.

The annual volumes processed by the Relevant Entities are immaterial in the context of the DPO group. We understand annual volumes were less than 2% in 2019 and reducing further in 2020.  In anticipation of completion of the acquisition, DPO intends to transfer all European originated transaction volumes to its existing acquirers in Africa. The relationships with the Relevant Entities have either been terminated or are in the process of being terminated.

Dietmar Knoechelmann was convicted for wrongdoing unrelated to DPO, as was another individual, who had, prior to his conviction, become a minority shareholder of DPO in or around 2012 and currently owns 1.24% of DPO.

In advance of completion, Network is continuing to take additional steps to provide further assurance including in relation to the Related Entities and has appointed Freshfields Bruckhaus Deringer LLP to assist it.  We have not found any evidence to date of any wrongdoing by DPO or its management and can confirm that no Wirecard directors or executives, past or present at any time, have ever been involved in the management of DPO.

Network continues to work to the completion of this important strategic acquisition, which will help accelerate our growth in Africa through online payments and mobile money. The transaction is expected to complete in the first quarter of 2021 following receipt of required regulatory approvals.

Investor Relations enquiries
Network International	[e-mail]
Amie Gramlick, Head of Investor Relations
Media enquiries
Finsbury	[e-mail]
James Leviton, Rob Allen

Forward Looking Statements

This announcement contains certain forward-looking statements with respect to the financial condition, results or operation and businesses of Network International Holdings Plc. Such statements and forecasts by their nature involve risks and uncertainty because they relate to future events and circumstances. There are a number of other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those projected in the forward- looking statements.

These factors include general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances.

 

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