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What: Shares of Net 1 UEPS (NAS: UEPS) jumped today by as much as 15% after a favorable court ruling.
So what: In January, the company was awarded a lucrative contract by the South African Social Security Agency, or SASSA, to provide payment services for government social grants for five years. A month later, the contract was disputed by two local companies that lost during the bidding process, AllPay and Empilweni.
Now what: AllPay and Empilweni had said the award "threatens to completely destroy" its business. Net 1's announcement today was that the North Gauteng High Court ruled that the SASSA contract was valid and won't be set aside. The contract will involve enrolling millions of grant recipients and issuing smart cards with biometric tools.
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The article Why Net 1 UEPS Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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