Mike Steere

Mike Steere asked about the impact of the recent South Sea news on SARCA's 5% shareholding and potential benefits from its restructuring and listing, the perceived threat from Shoprite's entry into the banking sector, and further details on impairments and PPA acceleration, including future amounts and any impact from the BankZero acquisition.

Answer

Dan Smith (Group CFO, Lesaka technologies) confirmed Lesaka holds a 5% stake in South Sea, currently valued at zero, and hopes for revaluation upon IPO while preserving rights. Ali Mazanderani (Executive Chairman, Lesaka technologies) and Lincoln Mali (CEO, Lesaka technologies) viewed Shoprite's entry as another market entrant, emphasizing Lesaka's differentiated distribution, comprehensive product offering (transactional, lending, insurance, ADP), and focus on customer needs rather than direct competition. Ali Mazanderani referred to previous explanations for impairments and PPA acceleration, noting the ZAR 160 million expected next year.

Mike Steere asked about the impact of recent South Sea news and restructuring on Lesaka Technologies' 5% shareholding, inquiring about support for the restructuring and potential benefits from a successful IPO. He also questioned the perceived threat from Shoprite's entry into the banking sector and Lesaka's strategy to compete. Finally, Steere requested further details on impairments and PPA acceleration, specifically asking about the R160 million expected next year and any potential increase due to the BankZero acquisition.

Answer

Dan Smith (Group CFO, Lesaka technologies) confirmed Lesaka holds a 5% stake in South Sea, valued at zero on their books, and expressed support for a successful IPO while preserving their rights. Ali Mazanderani (Executive Chairman, Lesaka technologies) and Lincoln Mali (CEO, Lesaka technologies) addressed the Shoprite competition, viewing it as market validation and an opportunity to differentiate through a comprehensive solution (transactional accounts, lending, insurance, ADP) and unique distribution model, emphasizing collaboration where possible. Dan Smith offered to recap PPA principles, but Mike Steere indicated his question was sufficiently answered by prior discussion.