Network International, a UAE-based payment solutions provider, has secured a $300m investment commitment from Mastercard for its planned IPO on the London Stock Exchange.
Image: Network International secures Mastercard investment for its IPO. Photo: courtesy of rawpixel/Pixabay.
In addition to the cornerstone investment, Network International has also forged a partnership with Mastercard to fast track the development of electronic payments in the in the Middle East and Africa.
Mastercard’s investment will be made on the same terms as institutional investors taking part in the IPO, said the UAE-based firm. It will be subject to an ownership limitation of 9.99%, a 24 month lock-up period along with a 36-month standstill not to acquire further shares without Network International’s board approval.
The investment from the US financial services giant will be conditional on an IPO of Network International with the minimum institutional free float being 25%.
Network International chairman Ron Kalifa said: “Mastercard’s commitment to become a cornerstone investor in Network International’s planned IPO with a $300 million investment, demonstrates significant confidence in the strength of the business as we move forward to listing.”
Network International, which was established in 1994 as a 100% subsidiary of Emirates Bank, offers provides a range of technology-enabled payments solutions to merchants and financial institutions, which include acquiring and processing services along with a range of value-added services.
The company’s payment products and service are said to be used by over 65,000 merchant partners and 220 financial institutions in more than 50 countries.
In the Middle East and Africa, the company and Mastercard have agreed to support their mutual strategy of expanding the payments ecosystem.
Mastercard has agreed to either pay or invest through its Arabian partner on a yearly basis for the developing and delivering shared innovation to expand product areas and boost the adoption of digital payments in the two regions.
The two companies will also set up shared development projects and cross-referral arrangements for value-added services and products. The partnership will cater to financial institutions and merchants by providing cyber and intelligence tools and tokenization solutions, which are expected to result in incremental financial benefits to both the companies.
Both the firms will retain and offer their respective independent solutions. The partnership agreement also allows Network International to fully retain its scheme agnostic strategy.
Mastercard Middle East and Africa president Raghu Malhotra said: “We believe that Network International’s broad geographic reach will complement our existing activities and help to deliver a deeper and sustained shift from the use of cash and checks. We will continue to partner with stakeholders across the region that help to enhance the electronic payment industry.”