All of the conditions precedent to JSE-listed Blue Label Telecom’s largest acquisition to date have been fulfilled or waived, paving the way for the group to finalise the transaction.
The group’s buy-out of cellular products and services provider Retail Mobile Credit Specialists (RMCS) completed its final hurdle on Tuesday after securing competition authorities’ approval.
In December, Blue Label agreed to a purchase consideration – to be funded from existing cash resources of R307-million, with another R32-million due if certain earnings targets were reached.
However, the initial amount was adjusted downwards to R298.7-million.
The deal would provide access to new channels for the distribution of both RMCS and Blue Label products and services, while enhancing Blue Label's earnings and product portfolio.
RMCS, which had about 500 customers – including an exclusive contract with Edcon – and supplied telecommunication products and services, content, data and allied activities through both physical and virtual mediums, was owned by Pharaoh, the Karoobos Trust, the Rooibos Trust, Adam Greenblatt, Bradley Ivan Kark, Keith Larry Brouze, Michael Roffey, Ran Goldstein, Shaun Hurwitz and Terence Nicholas Lazard.