Blue Label sells 47.56% interest in Blue Label Mexico
JSE-listed Blue Label Telecoms is selling its 47.56% interest in Blue Label Mexico to co-shareholder Grupo Bimbo for $11.5-million.
Blue Label will use the proceeds to settle its total parent guarantee obligations of $3.25-million payable to RBL Bank on behalf of Oxigen Services India, as well as $5.375-million as a part payment by The Prepaid Company to Special Purpose Vehicle 2 against its remaining liquidity support obligations of $10-million.
This is in line with Blue Label’s strategy to refocus its efforts on its South African Distribution businesses and to deleverage the business in order to ensure a more robust and liquid balance sheet going forward, the company said in an update.
The outstanding conditions precedent for the transaction to become effective by September 21 include the waiver by a minority shareholder in Blue Label Mexico of its pre-emptive rights and the payment by Blue Label Mexico to Blue Label’s employee secondee of his salary up to September 21.
The total proceeds will be receivable on the effective date; however, in line with Mexican tax legislation, tax is payable on the proceeds of the disposal and, accordingly, the balance of the proceeds receivable will be applied to pay such taxes up to a maximum of such residue.
The value of the net assets comprising the equity accounted investment in Blue Label Mexico as at May 31 amounted to R138-million.
The equity accounted loss after tax attributable to the investment in Blue Label Mexico for the year ended May 31, amounted to R5.8-million.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation