| Thu 11 Apr 2002, 0:00 | | Portuguese Investors Take R30-million Stake In Pr |
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Prism Holdings Limited
11 April 2002
IN A MOVE WHICH validates JSE-listed Prism Holding's rollout of its SA-
developed EasyPay technology, two leading Portuguese institutions have
agreed to provide up to Euro 3-million (around R30-million) in the purchase
of equity and provision of loan capital in PayShop (Portugal) SA, in
exchange for a 40% stake in the start-up venture.
This follows the announcement by Prism CEO Alvin Els at the group's interim
results last month that PayShop management and Prism were in discussions
with two separate international funding entities for an injection of capital
into PayShop.
Leading private equity bank, Banco Efisa - the investment arm of Group Banco
Portugues de Negocios, PME Capital - one of the most experienced venture
capital firms operating within the Portuguese market and Frie PME Capital -
an investment fund managed by PME Capital - acquired respectively, for Euro
750,000, Euro 75,000 and Euro 375,000, a 20%, 10% and 10% share in PayShop
(Portugal) SA. In addition, the three investors have agreed to commit the
equivalent sum in the form of a shareholders loan, repayable after two
years. This brings their total commitment to Euro 3 million.
Prism currently has a 19,1% shareholding in PayShop Limited, the UK-based
principal of PayShop (Portugal) SA. In addition, Prism retains an option to
convert its loan stock in the company, which would increase its stake in
excess of 60%.
PayShop went live in Portugal last July, giving consumers there the
convenience of paying their electricity, water and telephone bills at major
retail outlets including Alisuper, Intermarche and TotalElfFina.
Prism group marketing director, Steven Sidley says the fact that Banco Efisa
and PME Capital conducted stringent due diligence of PayShop, EasyPay and
Prism before committing to the investment, endorses Prism's faith in
PayShop's business model and technology.
"It augurs well for the expansion of PayShop into other regions," he adds.
Rob Farbrother, chairman of PayShop Limited, says: "The operational success
in Portugal, further underpinned by the confidence shown by Banco Efisa and
PME Capital, will demonstrate to other international markets the value of
the PayShop brand and its attractive service offering."
Dr Abdool Vakil, President of the Banco Efisa states:
"The decision of Banco Efisa to participate in the capital of PayShop
(Portugal) SA, an innovative project within the sector of electronic
collection, is based upon the fact that this is a properly structured
business which respects our goals in terms of the expected valuation.
"It is a project developed by a team of people who show enormous commitment
and have proved their competency when they implemented a similar project in
the United Kingdom which achieved a significant success," he explains.
NOTE TO EDITORS
About Prism:
JSE-listed Prism Holdings is a world leader in the secure electronic
transaction market. With a growing presence in Europe and South-East Asia,
Prism is one of the few companies offering services, solutions and products
that bridge the following core technologies:
Security - sophisticated cryptographic security solutions, many developed
using own intellectual property resources;
Payment solutions in the physical and virtual (Internet and wireless)
realms; and
Smart card technologies spanning both wireless communications and electronic
payments.
About Banco Efisa
Banco Efisa is the investment arm of Group Banco Portugues de Negocios.
Abdool Vakil, the President and main shareholder of the bank was a former
manager at the Bank of Portugal (Central Bank).
About PME
Founded in 1989, PME Capital is one of Portugal's leading venture capital
firms, with Euro 100-million in funds currently under their management.
PME's main shareholders include IAPMEI (the Institute for the Support of and
Investment in Small and Medium Companies); IPE (Investments and
Participations in Companies, SA), a public entity which aims to increase
modernisation of companies and activities relevant to the national economy,
by means of partnerships with private entities) and major national finance
groups. PME Capital is a member of EVCA - European Venture Capital
Association, founder and partner of APCRI - Portuguese Association of Risk
Capital.
About PayShop
PayShop (Portugal) SA, the only private household bill presentment and
collection service operating in the Portuguese market was founded at the end
of year 2000. Currently, the service already includes a network of 250
approved agents who cover 10 of the 18 Portuguese districts and comprise the
largest retail chains such as Alisuper, Intermarche, TotalElfFina and Sonae.
Through the service, local consumers are able to pay several basic services
provided by the major utility companies (national and local water suppliers,
electricity, mobile and fix telephony and cable TV).
issued by : Citigate Ballard King +27(0)11 804 4900
for : Prism Holdings +27(0)11 548 1000
www.prism.co.za
contact : Steven Sidley, group marketing director, Prism
or Hilary King, Citigate Ballard King
