https://www.engineeringnews.co.za
Africa|Business|Fire|Bearing
Africa|Business|Fire|Bearing
africa|business|fire|bearing

Blue Label to sell Blue Label Mobile, 3G Mobile to reduce its debt

25th September 2019

By: Creamer Media Reporter

     

Font size: - +

JSE-listed Blue Label on Wednesday announced that it would sell its interest in Blue Label Mobile Group to investment holding company DNI 4PL Contracts, which would also acquire Blue Label subsidiary The Prepaid Company's (TPC's) interest in 3G Mobile.

The company said the transactions were aimed at deleveraging the business to "ensure a more robust and liquid balance sheet".

In respect of the Blue Label Mobile Group, DNI will pay Blue Label an initial R350-million, plus R100-million, which will escalate at the prime rate of interest plus 2% from the fifth business day after the date on which all suspensive conditions are met and the date upon which the Cell C board resolves that the mobile operator passes the solvency and liquidity test set out in the Companies Act.

The purchase consideration will also include all amounts paid by Blue Label Mobile in respect of its acquisition of 50% of the issued ordinary shares of Hyve Mobile and Mobile Content Africa.

Further, DNI will pay R544-million for TPC's shares in 3G Mobile.

The proceeds from the two transactions will be used to reduce Blue Label's interest-bearing debt.

Blue Label holds a 45% interest in mobile operator Cell C and has come under fire from shareholders, given Cell C's high debt burden.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 
Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.075 0.126s - 139pq - 2rq
Subscribe Now